Bitcoin recovers from new lows on December 30th, while the market does not yet have to show a clear course towards the end of the year.
diagram price BTC 4 hours | Source: TradingView
MicroStrategy buys an additional $ 94.2 million in Bitcoin
Business intelligence firm MicroStrategy bought an additional 1,914 bitcoins for $ 94.2 million in cash, according to the company’s website. file their most recent legislation.
The company’s total number of bitcoins now grows to 124,391 bitcoins, which is worth around $ 5.9 billion at current prices.
The last purchase was between December 9th and 29th.
In particular, the company’s average purchase price has now exceeded $ 30,000, which means Bitcoin must stay above the above levels in order for the company to break even.
In early December, the company also announced a $ 84 million purchase of Bitcoin.
Last month, CEO Michael Saylor told The Information that he personally owns $ 866 million in Bitcoin and expects the price to climb to $ 600,000 without giving a specific time frame. Ultimately, Saylor believes that because of its deflationary nature, Bitcoin will continue to appreciate indefinitely.
In an interview with Yahoo! Finance Earlier this month, the consultant recognized a Black Swan event as the only valid risk to Bitcoin, as the largest cryptocurrency has yet to be hacked while all clones “fail”:
“The only valid risk is the black swan – an unknown stranger,” he said in an interview.
At the same time, he rejects a number of potential challenges:
“Has it been hacked? Not yet. Is it banned? No, it is not forbidden. Can it be copied? We copied it a thousand times. All copies fail. ”
Bitcoin is currently down 2% in the past 24 hours, trading at $ 47.262. The largest cryptocurrency is down 18% this month.
Gold beetle Peter Schiff speculate Bitcoin price would be “much lower” if it weren’t for the MicroStrategy purchase step. He compares Saylor’s last purchase to a “Christmas present” for a salesman.
MicroStrategy stock is up a modest 30% year-to-date and barely outperformed the S&P 500 benchmark index.
$ 46,000 is not yet a reserve price
Data from TradingView shows that BTC rose to $ 47,731, making up almost all of the previous day’s losses.
Before Wall Street opens, prices will still stay above the $ 47,000 mark, but traders are warning that the BTC price action is far from over.
“The market has been pretty boring lately. Just a bottoming out process for Bitcoin. BTC is retesting $ 46,000 as support and bouncing, but will likely need to get liquidity below lows before doing any more runs, ”analyst Michaël van de Poppe summary.
That liquidity was between $ 44,000 and $ 45,000 on that day, with Bitcoin firmly establishing a resistance-limited range of $ 53,000 and more earlier in the week.
Given the low liquidity holiday season, the potential for a sharp increase or decrease remains.
On-chain analytics company Glassnode notice in the latest weekly newsletter The Week Onchain:
“In addition to the high probability of a leverage squeeze, we also expect a general decline in trading volume. Quieter trading activity is typical towards the end of the year, but on a 7-day average the volume of the futures market is 16% below the previous year’s figure. Lower volume and increased open interest (on a centralized exchange) are a combination that could at least favor a localized leverage squeeze in the coming weeks. ”
Veteran dealer Peter Brandt Arguments That pressure has yet to be done this week.
Not all Dealers all sit still
As reported, the macro markets took center stage after Christmas with new all-time highs.
At the same time, institutional interest in Bitcoin seems to be relatively low, as shown by the poor performance of the first US futures-based Bitcoin Exchange Traded Fund (ETF).
Total open interest (OI) in futures nearly doubled this year, increasing $ 9.57 billion, or 97%, to a total of $ 18.87 billion. This week alone, open interest soared about $ 2.5 billion, mostly led by traders on Binance, ”said Glassnode.
OI futures contract Bitcoin | The source: Coinglass
Binance’s BTC balance increased over the course of December likely due to the switch of Chinese users from Huobi Global.
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