MicroStrategy just bought another 10,107 Bitcoin (BTC) today for approximately $1.1 billion at an average price of $105,596 per BTC, as announced by Michael Saylor, founder of MicroStrategy, on his X account. With this purchase, the total holding of the company now stands at 471,107 BTC.
MicroStrategy’s Impact on BTC Price
As of January 26, 2025, the company has an annual return of 2.90% year-to-date. It is a well-known fact that acquisition of Bitcoin by the company often leads to an uptick in the price of the token.
It has also been observed that MicroStrategy usually makes the purchases on Monday, and today was no different. Today’s purchase has led to a significant uptick in the price of the token. Earlier today the prices dipped from $105,000 (on Sunday January 26) mark and dropped below the $100,000 mark. The lowest price recorded today was somewhere around $98,000 mark. However, following the company’s announcement of its latest acquisition, BTC prices rebounded, climbing 1.4% within an hour and crossing the $100,000 threshold once again.
Strengthening Bitcoin’s Market Dynamics
MicroStrategy’s business model indicates its confidence in the asset’s long-term value. This latest purchase indicates its position as a leader in the corporate BTC holder but it also indicates the company’s influence on the market price of the token.
The surge in the price of the token after the announcement of the purchase also indicates a direct correlation between the company’s buying activity and Bitcoin‘s short-term market performance. Such moves by institutional bodies not only states that Bitcoin is being accepted as a reliable store of value but it also increases investor confidence specially when there is high volatility expected.
As Bitcoin regains momentum and crosses the $100,000 mark again, MicroStrategy’s acquisition on Monday always set a positive tone for the market for the coming week.
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