Aaryamann Shrivastava
FXStreet
- CoinShares report highlighted that the week ending March 24 noted the highest inflows since July 2022.
- MicroStrategy holds over $4 billion worth of Bitcoin after adding 6,455 BTC since last month.
- Bitcoin price is trading at $26,923, struggling to breach $28,500 for nearly two weeks now.
Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew. At the same time, another major bitcoin holder MicroStrategy also dove back into accumulating BTC suggesting that the cryptocurrency could be taking a bullish turn.
MicroStrategy is back to acquiring Bitcoin
In a regulatory filing on March 27, Michael Saylor’s company announced that MicroStrategy had acquired about 6,455 BTC for $150 million over the last two months. The average price of each Bitcoin stood at around $23,238, bringing the total BTC holdings of the firm to 138,955.
This is the first purchase announced by MicroStrategy this year, as the last purchase was noted in December 2022, when the company had added about 2,500 BTC. Valued at $4.14 billion, the average price of each Bitcoin held by Saylor’s organization is close to $29,817. The current price of the biggest cryptocurrency in the world is around $26,780, which shows that Microstrategy’s investment is still at a loss.
Bitcoin price needs to be at a nine-month high and breach the critical support at $28,567 for the company to break even on its investment. However, BTC is treading in the opposite direction at the time of writing, trading at $26,923, falling by nearly 4%. Struggling to breach the critical resistance at $28,567 for about 14 days now, Bitcoin would need a push from investors to climb back to $30,000.
BTC/USD 1-day chart
If the price falls further and loses the support at $24,943, it would be on the path to testing the critical support at $22,219. Falling through it would invalidate the bullish thesis, potentially sending Bitcoin price to $20,000, marking a 20% crash.
Rising institutional interest could save Bitcoin from crashing
MicroStrategy’s move is one of the first few indications that institutions might be back investing in the crypto market and Bitcoin again. The CoinShares report highlighted that the weekly crypto asset flow for the week ending March 24 hit an eight-month high of $160 million.
Of this $160 million, $127.5 million was directed towards Bitcoin. Although considering the year-to-date flows, the asset is still noting a macro outflow of $104 million but rising institutional interest could flip that over the next few weeks.
Bitcoin institutional inflows
This changing interest was also observed a few days ago in the form of whale movement as big wallet holders’ activity became much more significant. As observed on-chain, the transactions worth more than $100,000, denoted to be whale activity, shot up to a 15-week high.
Acquisitions by large wallet holders are generally a signal that the cohort is expecting a price rise going forward, which usually plays out in their favor.
Thus Bitcoin investors looking to go long should look out for the opportunity to jump in should the pattern repeat this time around as well.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?