As of October 23rd, MicroStrategy holds 158,245 BTC, valued at $4.847 billion USD, representing an increase of approximately $132 million USD compared to their initial investment. Their average purchase price for each Bitcoin is $29,870 USD. In simple terms, the company is currently making at least a $130 USD profit on each BTC.
MicroStrategy began purchasing Bitcoin in 2020 and further increased their holdings in 2023 when BTC prices rebounded from significant losses due to Federal Reserve interest rate policies, high-profile bankruptcies, and cryptocurrency market crashes.
In September 2023, MicroStrategy acquired 5,444 BTC by raising equivalent capital, reflecting their approach of accumulating around 12,333 Bitcoins by raising funds earlier in the year.
Michael Saylor, co-founder and chairman of MicroStrategy, has shared data demonstrating Bitcoin’s outstanding performance compared to traditional assets since the company adopted its cryptocurrency acquisition strategy in August 2020.
Since May 2022, Bitcoin has struggled to establish a clear upward momentum after surpassing the $30,000 USD mark. This scenario could potentially repeat in the coming weeks, which may push the price of MicroStrategy’s BTC holdings below their average purchase price once again.
Several other bearish signals come from Bitcoin’s daily Relative Strength Index (RSI), which is currently at its most overbought level since January 2023. According to technical analysis principles, an overbought RSI (above 70) can either cause a decrease in BTC prices or lead to a consolidation phase.
A correction scenario would see the Bitcoin price targeting the 50-day Exponential Moving Average (EMA) near $27,720 USD in November, representing a roughly 10% decline from the current level.
On the other hand, maintaining and confirming $30,000 USD as a new support level could open up the possibility of moving toward the next major resistance at $32,000 USD, a level not seen since May 2022.
From a fundamental perspective, CryptoQuant notes that the approval of a potential Bitcoin spot ETF in the United States could play a significant role in a strong price increase. It emphasizes that the approval of a Bitcoin ETF could increase the overall market capitalization of Bitcoin to $155 billion USD.
In return, the price of each Bitcoin is expected to reach $50,000 to $73,000 USD by 2024, which would undoubtedly benefit MicroStrategy. The company has stated that they will continue to follow their BTC roadmap even if a Bitcoin ETF is greenlit.
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