MicroStrategy's investment in Bitcoin has become profitable once again as the price of BTC surged above $30,000. The company currently holds 158,245 BTC, worth $4.847 billion, and has seen a paper profit of about $132 million since its initial investment.
MicroStrategy's Bitcoin buying spree
MicroStrategy began purchasing Bitcoin in 2020 and increased its buying activity in 2023. This move came as BTC recovered from significant losses caused by the Federal Reserve's rate hike policy and high-profile crypto bankruptcies. In September 2023, MicroStrategy acquired an additional 5,444 BTC by raising capital, following a similar approach used earlier in the year.
Bitcoin's future price outlook
While Bitcoin's price has surpassed $30,000, it has struggled to establish a sustained bullish momentum since May 2022. This could potentially lead to a correction in the coming weeks, which may affect MicroStrategy's BTC investment. Technical indicators, such as the relative strength index (RSI), suggest that Bitcoin is currently overbought, which could result in a price drop or sideways consolidation. If a correction occurs, Bitcoin's price may head towards its 50-day exponential moving average, around $27,720 in November.
However, if Bitcoin manages to maintain $30,000 as a support level, it could potentially reach the next major resistance area at $32,000. Additionally, the approval of a Bitcoin exchange-traded fund (ETF) in the U.S. could serve as a strong bullish catalyst for the market. CryptoQuant predicts that such an approval could increase Bitcoin's net capitalization by $155 billion, potentially driving the price to $50,000-73,000 in 2024.
MicroStrategy's BTC strategy
Despite the potential impact of a Bitcoin ETF approval, MicroStrategy has stated that it will continue to stay on course with its BTC holdings. The company remains committed to its cryptocurrency-buying strategy, even if a Bitcoin ETF receives the green light.
It's important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment before making any investment or trading decisions.
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