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MicroStrategy's involvement with Bitcoin is a foundation of institutional crypto exposure. Recently an unrealized profit of the company, it has hit the $6.2 billion mark. MicroStrategy's purchase strategy may seem random and somewhat archaic, but there is logic behind it.
The company has systematically increased its Bitcoin holdings through calculated purchases. These buying strategies are marked by timing the market to optimize entry points and significantly investing during price drops.
MicroStrategy’s purchases often coincide with price dips, exemplified by the accumulation spots highlighted on their portfolio's performance chart. These strategic buys are somewhat similar to a popular dollar-cost averaging strategy, where investors slowly increase their holdings as the price of an asset goes down, averaging the dollar cost of their position.
Yuri MolchanMicroStrategy's active buying strategy has been considered as a driving force for the market numerous times . Their significant market inflows often provide a boost to Bitcoin's market sentiment, creating a ripple effect that can be felt across the ecosystem. By consistently increasing its Bitcoin holdings, MicroStrategy not only reinforces its portfolio but also solidifies the market positioning of Bitcoin.
Bitcoin's price performance
Taking a look at Bitcoin’s price chart, we can see resistance forming at around the $65,000 level, a point where upward momentum has struggled. The push past this resistance provides potential for further growth, possibly targeting the next resistance level near $68,000. Support, on the other hand, appears firm around the $60,000 mark, which has served as a springboard for price recoveries in the past.
If MicroStrategy continues its buying spree, we may see Bitcoin surpass current resistance levels thanks to fresh inflows. Any substantial purchase from the company tends to coincide with increased investor confidence and improved sentiment, which is what BTC really needs right now.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov