MicroStrategy has crossed a major milestone in its Bitcoin holdings, acquiring an additional $243 million worth of BTC, bringing its total to over 450,000 Bitcoin.
MicroStrategy’s Record-Breaking Bitcoin Holdings
- Recent Purchase: The company bought Bitcoin at an average price of $95,972 per BTC, adding to its massive cryptocurrency portfolio.
- Total Holdings: MicroStrategy now owns more than 450,000 Bitcoin, purchased for a total of $28.2 billion at an average price of $62,691 per BTC.
- Leadership Announcement: Michael Saylor, MicroStrategy’s founder and chairman, confirmed the purchase in a January 13 post on X.
This aggressive accumulation strategy positions MicroStrategy as the largest corporate Bitcoin holder globally.
Bitcoin Supply Shock on the Horizon?
MicroStrategy isn’t the only buyer during Bitcoin’s recent dip. Crypto hedge funds have also been purchasing BTC, driving exchange reserves to their lowest levels since 2018.
Why This Matters:
- Supply Shock Potential: When Bitcoin supply on exchanges diminishes alongside increased buying demand, a supply shock could occur, potentially driving prices higher.
- BTC Exchange Reserves: As of January 13, reserves hit a near seven-year low, signaling strong accumulation across the market.
Bitcoin’s Vulnerability to Macroeconomic Trends
Despite bullish sentiment from institutional buyers, Bitcoin remains sensitive to macroeconomic forces:
- Post-Election Rally and Decline: Bitcoin surged past $100,000 on December 6, 2024, following Donald Trump’s victory in the 2024 US presidential election. However, markets quickly priced in the optimism, leaving BTC vulnerable to broader economic trends.
- Economic Data and Rate Hikes: A stronger-than-expected US Job Openings and Labor Turnover Survey (JOLTS) on January 9 raised concerns over prolonged Federal Reserve tightening.
- The Federal Reserve is now expected to delay interest rate cuts until at least July 30, 2025, according to the CME Group’s FedWatch tool.
- Higher interest rates make risk assets, including Bitcoin, less attractive to investors.
Analysts like Ryan Lee from Bitget Research attribute Bitcoin’s dip below $92,000 to strong US economic data, signaling potential rate hikes in 2025.
