Microstrategy’s Bitcoin Purchase and the Coinbase Premium
An analyst has pointed out how Microstrategy’s recent Bitcoin purchase could explain a pattern observed in a particular metric. Yesterday, Microstrategy announced that it acquired an additional 5,445 BTC at a cost of $147.3 million. The CryptoQuant Netherlands community manager shared some key charts related to the company’s buying spree.
Microstrategy’s Buying Spree and Bitcoin Price
A chart shows how Microstrategy’s buys and sells align with the cryptocurrency’s price over the years. It is notable that the company announces these purchases after acquiring the coins over preceding weeks or months. The latest buying spree occurred between August 1 and September 24 at an average price of $27,053 per token. This may explain why uptrends have ended with Microstrategy’s purchase reveals.
The Impact on the Market
Microstrategy’s buying pressure significantly affects the market, leading to potential selling by other investors and causing a bearish effect on the price.
Microstrategy’s Bitcoin Holdings and Coinbase Premium Gap
A week ago, a chart for the Bitcoin Coinbase Premium Gap was shared, tracking the difference between BTC prices on Coinbase and Binance. The graph shows that Microstrategy’s Bitcoin holdings had come into slight profit earlier in the year but have now gone underwater due to the recent decline in cryptocurrency value.
BTC Price
Bitcoin has experienced a fall of more than 3% in the past week, bringing its price down to $26,200.
Hot Take: Microstrategy’s Bitcoin Purchases Impact the Market
The recent Bitcoin purchases by Microstrategy have not only affected their own holdings but also had a significant impact on the overall market. With their buying pressure gone, the market experiences a bearish effect, leading to potential selling by other investors. This pattern has been observed in the correlation between Microstrategy’s buys and sells and the cryptocurrency’s price over time. It remains to be seen how future purchases by Microstrategy will continue to influence the market and whether this pattern will persist.
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