Why is Crypto Market Reacting Positively to MicroStrategy’s Bitcoin Buy? Here’s How to Earn BTC with Bitcoin Minetrix

MicroStrategy made headlines yesterday after revealing the purchase of 14,620 more bitcoins for around $615.7 million on December 26th. The company paid an average price of $42,110 per bitcoin, adding to its already massive bitcoin treasury.

With this latest acquisition, MicroStrategy now holds a total of 189,150 BTC acquired for approximately $5.9 billion at an average price of $31,168 per bitcoin. The company’s bitcoin holdings are currently worth over $8 billion, representing one of the largest institutional bitcoin treasuries in the world.

The crypto market reacted positively to the news. Analytics platform Santiment noted that MicroStrategy’s continued bitcoin purchases and positive developments have frequently preceded bullish price movement in the past:

“Microstrategy’s latest purchase of $615M in Bitcoin caused some euphoric waves among traders. Now holding over $8B worth of crypto’s top asset, we see that recent purchases and positive news relating to the firm have led to bullish market movement.”

For example, when MicroStrategy reported positive third-quarter revenue results on November 1st, social dominance surrounding bitcoin increased. Shortly after, on November 30th, the company bought 16,130 BTC, and the bitcoin price jumped 17% in the following 5 days.

Similarly, once MicroStrategy’s most recent $615 million purchase hit mainstream media, bitcoin price rose back above $43k. According to Santiment, these examples illustrate a correlation between MicroStrategy’s activities and positive market sentiment.

Strangely enough, Ethereum actually outperformed Bitcoin in the day following MicroStrategy’s purchase. While Bitcoin rose a modest 0.5%, Ethereum gained 6% to trade around $2400. As one crypto analyst noted regarding this divergence:

“BTC funding rates hit a 25-month high. Traders are just speculating on higher prices, which is no problem if the price doesn’t move against them. Otherwise it could be b

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Author: BeInCrypto Team

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