David – Cryptocurrency Enthusiast
In the latest cryptocurrency news, MicroStrategy, a firm directed by Michael Saylor, is witnessing the fruits of its cryptocurrency investment strategy. With Bitcoin (BTC) surging past the $30,000 mark, the company's investing in cryptocurrency is finally in profit since July.
MicroStrategy's crypto portfolio has shown significant growth. As of October 23, the firm owned 158,245 BTC, valued at $4.847 billion. This indicates an increase of roughly $132 million from their initial investment, given that the average purchase price was $29,870 for each Bitcoin.
The company embarked on its journey to buy cryptocurrency, specifically Bitcoin, in 2020. The pace of these purchases increased in 2023, especially when BTC's price started rebounding from significant drops. These declines were influenced by factors such as the US Federal Reserve's interest rate decisions and some prominent crypto portfolio management failures and shutdowns. In 2023 alone, by employing a method that previously enabled them to acquire about 12,333 BTC, MicroStrategy managed to purchase an additional 5,444 BTC.
Michael Saylor, MicroStrategy's co-founder, highlighted the superior performance of Bitcoin in comparison to traditional investment avenues since they initiated their cryptocurrency investment strategy in August 2020.
However, the path ahead for Bitcoin's price remains uncertain. Post-May 2022, even after crossing the $30,000 threshold, Bitcoin hasn't maintained a consistent bullish trend. Current technical indicators, like the relative strength index (RSI), hint at possible stabilization or even a price drop. If a correction occurs, Bitcoin might approach its 50-day exponential moving average (EMA), bringing its price close to $27,720, a decrease of about 10%.
If the currency can establish $30,000 as a stable support, it might challenge the next major resistance of $32,000, a level last observed in May 2022.
Shifting the focus to fundamentals, the anticipated US approval of a Bitcoin ETF could act as a significant bullish factor. Analysts at CryptoQuant believe that the sanctioning of a Bitcoin ETF could augment Bitcoin's market cap by a staggering $155 billion. If this prediction materializes, Bitcoin's price might skyrocket to a range between $50,000 and $73,000 in 2024. Such a surge would undeniably benefit firms like MicroStrategy, though the company intends to remain committed to its Bitcoin strategy irrespective of an ETF approval.