Strategic acquisition of Bitcoin by Microstrategy strengthens market position | Flash news details

According to IntoTheBlock, Microstrategy’s recent $101 million investment in Bitcoin represents another step in its strategic acquisition plan. As of January 11, 2025, this purchase has increased the company’s holdings to include 2.1% of the total supply of Bitcoin. This acquisition signals Microstrategy’s consistent strategy of accumulating Bitcoin, implemented through smaller strategic purchases. The latest purchase occurred during a period when Bitcoin was trading at around $42,000. The timing of the acquisition suggests a strategic approach to buying during relative price stability, as the price has been fluctuating between $40,000 and $45,000 over the past two weeks, according to CoinMarketCap data.

From a business perspective, Microstrategy’s accumulation behavior may encourage similar actions by institutional investors looking to Microstrategy as a leader for corporate Bitcoin investments. A consistent holding pattern will likely put upward pressure on Bitcoin price due to reduced supply availability. The purchase is in line with a period of increased trading volumes, as noted by IntoTheBlock, where Bitcoin’s 24-hour trading volume was recorded at $30 billion, indicating strong market activity. This environment of increased activity is critical for liquidity, which is beneficial for large transactions like those conducted by Microstrategy.

Technical indicators at the time of acquisition showed a neutral RSI (Relative Strength Index) of 52, indicating that Bitcoin was neither overbought nor oversold, which was in line with Microstrategy’s decision to buy. Moreover, the MACD (Moving Average Convergence Divergence) indicator was showing a convergence pattern, which could indicate an uptrend, which may have influenced Microstrategy’s decision to increase its holdings. On-chain metrics also highlighted a decline in Bitcoin on exchanges, falling 3% over the past month, indicating a potential shift from sell to hold among investors, a sentiment that buying Microstrategy could reinforce. This shift could have major implications for Bitcoin price stability and potential rise.