|

Bitcoin's bullish momentum cools despite Strategy's latest 4,020 BTC purchase

  • Strategy revealed it purchased 4,020 BTC for $427 million last week, boosting its total holdings to 580,250 BTC.
  • Bitcoin briefly dropped to $109,000 following signs of distribution from larger whales.
  • The selling pressure from these whales triggered two notable long liquidations as BTC dropped from $111,000 to $109,000.

Bitcoin (BTC) is trading around $109,000 on Monday as large holders began showing signs of selling amid strong accumulation from institutions, including Strategy, which acquired 4,020 BTC for $427 million.

Strategy scoops $427M BTC amid cooling whale interest

Strategy continued its Bitcoin buying spree after revealing in Monday's filing that it purchased 4,020 BTC for $427 million. The company now holds 580,250 BTC, with a total purchase price of $40.6 billion and a BTC yield of 16.8% since January.

The purchase comes after the company announced on Thursday that it would offer 10% of its perpetual strife (STRF) preferred stock for sale. The STRF stock will be sold for a $0.001 value per share, with a total offering of up to $2.1 billion.

According to the latest filing, Strategy has sold 104,423 shares of its STRF stock for $10.4 million, which it used as part of its latest Bitcoin purchase.

"Unlike previous bull cycles driven by retail enthusiasm, the current momentum is driven by structured capital inflow and long-term corporate positioning," Tracy Jin, COO of crypto exchange MEXC, told FXStreet. "Institutions are no longer just holding Bitcoin, they are building corporate strategies and business models around it," she added.

Bitcoin trades above $109,000 and is up 1.5% on the day following Strategy's BTC purchase announcement. The top crypto is looking to hold its recovery from a decline on Sunday that saw it trading below $107,000 after modest distribution from larger whales. 

Whales holding more than 10,000 BTC slightly shifted from accumulation to net selling despite continued accumulation from other cohorts, suggesting modest profit-taking from large holders, according to Glassnode data.

This aligns with two notable liquidations of long-overleveraged positions on the crypto exchange Binance after Bitcoin dropped below the $111,000 level on Thursday. 

The liquidations include a $97 million wipeout after BTC dropped toward the $110,900 threshold, according to CryptoQuant data. This was followed by a second long squeeze at $109,000, which erased $88 million in long positions within a few hours.

Following the dip, the Long-Term Holder (LTH) Realized Cap jumped to $28 billion for the first time since April.

BTC: STH/LTH Net Position Realized Cap. Source: CryptoQuant

"It's clear that long-term investors are using this period of forced selling to increase their exposure and accumulate more Bitcoin for the long run," wrote CryptoQuant analyst Amr Taha.

Accumulation from LTH often reflects the potential for future price appreciation as Bitcoin moves into the hands of investors with lower spending tendencies.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

More from Michael Ebiekutan
Share:

Editor's Picks

Solana Price Forecast: Bearish grip tightens on SOL amid broader market sell-off

Solana is down 4% on Friday, extending losses below $80 and marking a nearly 10% decline so far this week. The broader cryptocurrency market is seeing heavy selling, with Bitcoin diving below $70,000 and wiping out more than $1 billion in the derivatives market. This adds to the sell-side dominance in SOL futures amid persistent outflows.

Cardano Price Forecast: On-chain and derivatives weakness point to further ADA downside

Cardano extends losses, trading below $0.169 on Friday, with losses nearing 4% so far this week. Moreover, ADA is heading into its sixth consecutive weekly correction, down more than 30% since early October.

Top 3 Price Predictions: BTC, ETH and XRP extend losses as downside momentum dominates

Bitcoin, Ethereum, and Ripple extend their sell-off on Friday as bearish momentum gathers. BTC breaks below the $70,000 psychological threshold, while ETH loses the $2,000 support level, raising the risk of further losses. Meanwhile, XRP continues to slide as sellers maintain control, threatening a deeper correction toward $1.00.

Hyperliquid gains on centralized exchanges as open interest crosses $18B
Hyperliquid's (HYPE) open interest climbed to a record $18.1 billion in September as the decentralized exchange gained ground against major centralized trading platforms, with its share of combined open interest across eight leading exchanges rising to 11.7% in Q3.
Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss
Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. Persistent outflows from US-listed BTC spot Exchange Traded Funds (ETFs), a sharp sell-off in US technology stocks, and rising market liquidations are weighing on sentiment and limiting Crypto King’s recovery attempts.