In the current bullish market phase, MicroStrategy (MSTR), renowned as the largest corporate holder of Bitcoin (BTC), has demonstrated its unwavering confidence in BTC, irrespective of its fluctuating price. On November 11, 2024, Michael Saylor, the founder and chairman of MicroStrategy, took to X (formerly known as Twitter) to announce a substantial acquisition of 27,200 BTC, amounting to a significant investment of $2.03 billion.
MicroStrategy’s Revised Bitcoin Holding
Saylor elaborated on this strategic move by revealing that the average purchase price for this massive Bitcoin acquisition stood at $74,463. This strategic decision has enabled MicroStrategy to achieve a BTC yield of 7.3% OTD and an impressive 26.4% YTD. As a result of these recent acquisitions, MicroStrategy’s total Bitcoin holdings have surged to a staggering 279,420 BTC, accumulated at a total cost of $11.9 billion. This suggests an average acquisition price of $42,692 per BTC.
MSTR Bitcoin Buying Strategy
For traders and investors keen on understanding the dynamics of this move, it’s crucial to note that MicroStrategy executed this Bitcoin purchase as the cryptocurrency’s price surpassed its all-time high on November 6, 2024. This strategic timing underscores how industry leaders are actively buying and accumulating BTC as market sentiment turns increasingly bullish, particularly in the wake of the U.S. election results and robust price action. Such massive acquisitions by prominent investors and market whales have propelled BTC prices upward, with no signs of halting or undergoing a price correction, indicating a potentially bullish market signal.
Current Price Momentum
As of the latest market update, Bitcoin is trading at an impressive $82,000, marking a price gain of 2.7% over the past 24 hours. During the same period, trading volume has surged by a remarkable 37%, reflecting heightened participation from both traders and investors as prices continue their upward trajectory.
Bitcoin Technical Analysis and Rising Open Interest
Expert technical analysis of Bitcoin suggests a bullish outlook, with potential for significant rallies in the days to come. However, following an impressive price surge of over 22% since the announcement of the election results, there remains a possibility of a price correction in the near future. Currently, Bitcoin’s Relative Strength Index (RSI) is situated in the overbought territory, hinting at a possible price correction ahead.
On-chain metrics provide further support for Bitcoin’s positive market outlook. The on-chain analytics firm Coinglass indicates that not only whales and investors but also traders are exhibiting bullish sentiment, with strong market participation evident since November 6, 2024. Data reveals that BTC’s open interest has risen by 3.5% over the past 24 hours, further substantiating the bullish trend.
