As a seasoned researcher with a keen interest in digital currencies and a background in traditional finance, I find the recent surge of Bitcoin (BTC) intriguing. The fresh round of buying by business intelligence firm MicroStrategy has once again demonstrated the power of institutional adoption on market dynamics.
At the opening of Wall Street on December 2, Bitcoin (BTC) experienced an increase due to a new wave of purchases made by the business intelligence company, MicroStrategy, which positively impacted the markets.
Bitcoin embraces latest MicroStrategy purchases
As an analyst, I observed a significant increase in Bitcoin’s (BTC) value according to data sourced from both CryptoMoon Markets Pro and TradingView. Over the course of two consecutive hourly candles, BTC’s price surged beyond the $2,000 mark.
Instead of the usual slow pace, Bitcoin’s price against the U.S. Dollar surged quickly following MicroStrategy’s announcement that it had invested nearly $1.5 billion to increase its Bitcoin holdings.
According to a filing made on December 2, and later confirmed by CEO Michael Saylor, all purchases were completed by December 1.
As a researcher, I, Ki Young Ju, delved into examining the extensive Bitcoin (BTC) purchasing spree carried out by MicroStrategy, a company I’ve been closely following due to their significant role in the crypto market.
“$MSTR spent $13.5B on 149,900 BTC, with holdings up $21.5B in 30 days,” he noted in a post on X.
“Bitcoin market can’t absorb tens of billions short-term without driving prices up, making returns nearly inevitable. If BTC breaks $100K, the gains could grow even more as it enters price discovery.”
In response, QCP Capital acknowledged the forthcoming presentation by MicroStrategy’s CEO, Saylor, scheduled for December 10 to Microsoft’s board of directors. This move is also seen as an effort to cultivate goodwill with the firm, potentially hinting at a desire for QCP Capital to hold a Bitcoin reserve.
In simpler terms, “Microsoft’s shareholders are set to decide on a plan to include Bitcoin in their financial records on December 10. This decision could potentially push Bitcoin’s price above $100,000 before the end of the year.
“Microsoft’s top shareholders such as Vanguard, BlackRock and Fidelity already have exposure to crypto with investments in MSTR, Coinbase and other crypto firms. One could argue that they already possess sufficient exposure. On the other hand if the proposal passes, it would be bullish not only for BTC but also for their other investments.”
Overbought RSI precedes BTC price rebound
At the moment of this writing, the price of Bitcoin was hovering around $96,000 after initially testing the support level slightly below $95,000.
Nevertheless, traders maintained a hopeful perspective since the goal of reaching the $100,000 benchmark was constantly top-of-mind for all parties involved.
In simpler terms, trader Roman informed his X followers in a recent Bitcoin price analysis that there’s a positive adjustment in the market trends, which is helping to re-align RSI (Relative Strength Index) and other technical indicators.
“We’re also seeing bullish divergences form while building volatility for higher. It’s a matter of time before 100k breaks!”
On that particular day, Roman mentioned the Relative Strength Index (RSI) indicator, which came close to dropping beneath the significant “oversold” threshold of 30 when viewed on an hourly basis.
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2024-12-02 18:31