MicroStrategy buys 1,045 bitcoin, and Invest Diva explains her crypto confidence - CNBC Crypto World

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MicroStrategy has made yet another addition of over a thousand bitcoins to its current portfolio, further extending its position as the number one public company with the largest bitcoin holdings.

MicroStrategy Buys 1,045 BItcoin, Holdings now at $4.1 Billion

Software giant MicroStrategy has announced that it has purchased an additional 1,045 Bitcoins, worth $29.3 million, as it doubles down on its bet on the number one cryptocurrency. This latest acquisition brings the company’s total Bitcoin holdings to 140,000, valued at $4.1 billion, making it the public company with the largest stash of the cryptocurrency.

MicroStrategy’s long-term investment strategy in Bitcoin appears to be nearing profitability, with the current price of the asset only needing to increase by 6% for the company to make a profit.

In 2020, Michael Saylor, the founder of MicroStrategy, recognized Bitcoin as a potential hedge against inflation at the onset of the COVID-19 pandemic. As a result, he made his first investment in cryptocurrency and has since been gradually increasing his company’s Bitcoin holdings.

Despite the volatility of Bitcoin’s price over the past couple of years, Saylor remains optimistic about the cryptocurrency’s future prospects. He views it as a reliable store of value and an attractive investment asset that has the potential for long-term appreciation.

Saylor’s continued confidence in Bitcoin is a testament to his belief that it represents a revolutionary advancement in the world of finance. Bitcoin’s decentralized nature and limited supply make it a unique asset that cannot be manipulated by governments or financial institutions.

In addition to this, the use cases of Bitcoin have continued to expand beyond its initial purpose as a means of payment, and it is now recognized as a legitimate investment vehicle by a considerable section of the market.

Saylor has stated in numerous interviews that his conviction in Bitcoin has only grown stronger over time. He believes that the current price fluctuations are merely noise in the long-term upward trajectory of the cryptocurrency.

He is convinced that Bitcoin will continue to gain mainstream acceptance and become an essential component of many portfolios in the years to come. The latest acquisition by MicroStrategy comes as Bitcoin starts the year on a high, trading at $28,030 per coin, up from $16,615 at the beginning of the year.

With that being said, the asset is still down 60% from its all-time high of $68,789 in November 2021. MicroStrategy’s stock has also doubled since January 2023, with many long-term shareholders happy despite the company’s eighth consecutive quarterly loss.

Saylor believes that consistent, transparent, and responsible pursuit of the buy-and-hold Bitcoin strategy is the key to MicroStrategy’s success. He has also suggested that buying shares in the company is a way for investors to gain safe exposure to Bitcoin.

Where Is Bitcoin Headed Now That The Bear Run Is Over?

Bitcoin has been on a strong upward trend recently, with a 19% increase in just one month. This has prompted speculation about the end of the bear market, and there are several factors that could contribute to a sustained upward trend.

The recent US Non-farm Payrolls report for January showed a decline in job creation, which could have been a factor for Bitcoin investors. Additionally, institutional investors have been placing significant investments in Bitcoin, and the cryptocurrency has received support from Goldman Sachs, which has the potential to boost its value.

History shows that bear runs in the price of Bitcoin typically last four years and the accumulation phase could begin in 2023. Positive economic news could prompt investors to reevaluate their assumptions about the Federal Reserve’s monetary policy, and Bitcoin could protect investors from losses in US stocks. However, Tesla has declined to add to its Bitcoin holdings in the second half of 2022.

The belief among Bitcoin proponents is that the digital currency has the potential to serve as an alternative to gold as a safe haven or inflation protection. Recently, there has been a surge in the number of Bitcoin whales as well.

BitVol, an indicator of volatility, has reached its lowest level and appears to be losing momentum. Despite this, the negative trend may persist for another two to six months, as per the CEO of Galaxy Digital, a company that invests in cryptocurrencies.

The selling spree of high-ranking Bitcoin whales, who possess 100 to 10,000 BTC, is ongoing. The NVT signal has issued a bearish signal for the second month in a row, but a reversal in the signal could indicate a shift towards a bullish trend.

Nonetheless, Bitcoin has cemented its status as one of the largest assets globally, with a market capitalization surpassing that of numerous established corporations.

Bitcoin’s price cycles are getting shorter, and investors need to keep a close eye on the latest news and trends. However, it’s clear that Bitcoin has strong potential for growth and could be a valuable addition to any investment portfolio.

Bitcoin Price Prediction

BTC has experienced a significant price increase, attracting a large amount of liquidity that has sustained the bullish trend despite a drop in trading volume.

The RSI has reached overbought levels and remained stable without any movement up or down, indicating a possible consolidation of prices. Although the signs are mixed, there is a high probability that the cryptocurrency will break through the $31,000 threshold after a breakout.

Based on Bitcoin price forecasts, the current price is relatively close to average levels, and the price band is starting to contract, suggesting a potential bearish reversal. Consequently, the price may drop further toward the lower bands. The upcoming quarterly close is crucial for Bitcoin since it could determine the direction of the next trend.

Bitcoin miners are eagerly anticipating 2024, as it marks the fourth halving event where the mining incentive will rise to 3.125 BTC. This will also mean that 96.875% of Bitcoin will have been mined. The previous halving in 2020 resulted in a tenfold increase in price within a year.

Analysts predict that Bitcoin could reach $100,000 between 2024 and 2025, making 2024 halving an important event for the cryptocurrency. The price prediction for 2024 and 2025 will be crucial for the entire market.

However, the halving event may also cause market disruption and instability. By reducing the supply of Bitcoin in circulation, the currency becomes more scarce, driving up demand and maintaining its price. This presents opportunities for investors and traders to potentially profit from the surge in the cryptocurrency market. The price of Bitcoin will find a place between $57,000 to $70,000 next year.

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