Invest Diva discusses her faith in cryptocurrencies as MicroStrategy purchases 1,045 bitcoins – CNBC Crypto World

In order to maintain its position as the top public firm with the greatest bitcoin holdings, MicroStrategy has added additional over a thousand bitcoins to its present portfolio.

MicroStrategy purchases 1,045 bitcoin, bringing its total holdings to $4.1 billion

As it doubles down on its wager on the leading cryptocurrency, software behemoth MicroStrategy has revealed that it has acquired an extra 1,045 Bitcoins, valued at $29.3 million. With its most recent acquisition, the business’s total Bitcoin holdings, valued at $4.1 billion, have increased to 140,000, making it the publicly traded corporation with the greatest cryptocurrency hoard.

With the current price of the commodity only having to rise by 6% for the business to turn a profit, MicroStrategy’s long-term investment plan in Bitcoin looks to be close to becoming profitable.

At the start of the COVID-19 pandemic in 2020, MicroStrategy creator Michael Saylor identified Bitcoin as a viable inflation hedge. As a result, he made his first bitcoin investment and has since significantly increased the amount of Bitcoin his business owns.

Saylor is still upbeat about the potential for Bitcoin’s future despite the volatility of the cryptocurrency’s price during the previous several years. He sees it as an appealing investment that has the potential for long-term growth and a dependable store of value.

The fact that Saylor still has faith in Bitcoin is evidence of his conviction that it will revolutionize the financial industry. Bitcoin is a special asset that cannot be controlled by governments or financial institutions because of its decentralized structure and restricted quantity.

Additionally, the applications for Bitcoin have grown beyond its original usage as a form of payment, and a sizeable portion of the market now accepts it as a genuine investment instrument.

Saylor has indicated repeatedly in interviews that his belief in Bitcoin has only gotten greater with time. Considering the long-term rising direction of the cryptocurrency, he thinks that the recent price changes are essentially background noise.

He is certain that in the next years, Bitcoin will continue to acquire acceptability among the general public and turn into a crucial part of many portfolios. Bitcoin is off to a strong start this year, trading at $28,030 per coin, up from $16,615 at the beginning of the year, when MicroStrategy made its most recent acquisition.

Despite this, the asset is still down 60% from its record high, which was $68,789 in November 2021. Despite the company’s ninth straight quarterly loss, MicroStrategy’s stock has increased almost double since January 2023, making many long-term stockholders satisfied.

The buy-and-hold Bitcoin approach, according to Saylor, is the secret to MicroStrategy’s success. This strategy is pursued consistently, openly, and responsibly. He has said that purchasing business stock is a secure method for investors to have exposure to Bitcoin.

Now that the bear run is over, in what direction is bitcoin headed?

With a 19% spike in only one month, bitcoin has recently been on a strong upward trend. This has led to conjecture about the bear market’s end, and there are a number of things that might lead to a persistent rising trend.

It’s possible that the recent US Non-farm Payrolls data for January’s fall in employment creation has anything to do with Bitcoin investors. Bitcoin has also seen considerable investments from institutional investors, and Goldman Sachs has backed the cryptocurrency, both of which might increase its value.

The accumulation phase of the price of bitcoin might start in 2023, according to historical data that reveals bear runs normally last four years. Positive economic news can make investors reconsider their beliefs about the Federal Reserve’s monetary policies, and Bitcoin might shield investors from losses in US markets. Tesla has decided not to increase its Bitcoin holdings in the second half of 2022, nevertheless.

Proponents of Bitcoin think that the virtual currency has the ability to compete with gold as a safe haven or inflation hedge. The number of Bitcoin « whales » has also increased recently.

BitVol, a measure of volatility, has fallen to its lowest point and seems to be losing steam.

According to the CEO of Galaxy Digital, a business that invests in cryptocurrencies, the downward trend might go another two to six months despite this.

High-ranking Bitcoin whales are actively selling their 100–10,000 BTC worth of holdings. For the second consecutive month, the NVT signal has delivered a negative signal; nevertheless, a change in the signal might portend a change in trend toward the positive.

Yet this, Bitcoin has solidified its position as one of the biggest assets in the world, with a market valuation that exceeds that of several well-known companies.

Investors must closely monitor the most recent news and trends since Bitcoin’s price cycles are becoming more frequent.

But it’s certain that Bitcoin has significant growth potential and may add value to any investment portfolio.

Price Prediction for Bitcoin

BTC’s price has significantly increased, drawing a lot of liquidity, which has kept the positive trend going despite a decline in trading volume.

The RSI has overbought levels and has remained constant, not moving up or down, suggesting that prices may be consolidating. Despite the conflicting signals, there is a strong likelihood that the cryptocurrency will break above the $31,000 barrier following a breakthrough.

According to predictions for the price of bitcoin, the present price is not far from typical levels, and the price range is beginning to narrow, pointing to a likely negative reversal. The price may thus continue to decline into the lower bands. The direction of the following trend may depend on the results of the forthcoming quarterly closure, which is critical for Bitcoin.

The fourth halving event, in which the mining incentive rises to 3.125 BTC, will occur in 2024 and bitcoin miners are anxiously expecting it. 96.875% of Bitcoin will have been mined as a result, which is another consequence. Price increased tenfold in a year following the last halving in 2020.

The halving in 2024 will be significant for Bitcoin since many believe that it will hit $100,000 between 2024 and 2025. It will be vital for the entire market to know what prices will be in 2024 and 2025.

The market may see turbulence and market disruption as a result of the halving event, though. Bitcoin’s price is maintained by increasing demand as the currency’s scarcity increases due to the reduction of its quantity in circulation. Because of the growth in the cryptocurrency market, there are chances for investors and traders to make money. Between $57,000 and $70,000 will be the range at which Bitcoin will trade in the upcoming year.

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