MicroStrategy’s Bitcoin Accumulation Corroborates Declining Trading Volume

In the rapidly changing landscape of cryptocurrency, where market sentiments can shift at a moment’s notice, a recent tweet from CryptoQuant.com has shone a spotlight on a significant trend. As a trusted source for cryptocurrency data and analysis, CryptoQuant.com highlighted a growing preference among crypto enthusiasts for holding onto their digital assets rather than hastily selling for quick profits.

This month, Bitcoin’s trading volume hit a nearly 6-Year Low, signifying that investors are exercising caution and awaiting compelling reasons to re-enter the market.As of August 26, the trading volume of Bitcoin on all exchanges amounted to 129,307 BTC.

However, earlier in the month, specifically on August 12, this volume dropped to 112,317 BTC, marking its lowest point since November 10, 2018. This decline represents a significant decrease from the peak trading volume in March, which reached 3.5 million BTC, indicating a substantial 94% reduction.

Bitcoin (BTC) is priced at $26,293.17, boasting a 24-hour trading volume of $9,811,312,848.40. Over the last 24 hours, it has seen a 0.80% price increase, but in the past week, it has experienced a -2.80% price decline. Bitcoin’s market cap stands at $512,308,573,513, supported by a circulating supply of 19 million BTC.

This recent dip in Bitcoin’s price illustrates the inherent volatility of the crypto market. However, it’s worth noting that long-term investors, as highlighted by CryptoQuant.com, are increasingly leaning toward the hold  strategy, demonstrating their belief in the lasting value of cryptocurrencies.

While Bitcoin grapples with this price decline,MicroStrategy, a prominent business intelligence firm known for its steadfast support of Bitcoin, has once again made headlines. On September 25, the company, led by co-founder and executive chairman Michael Saylor, announced on twitter a significant move the acquisition of an additional 5,445 BTC, amounting to $147.3 million in cash, at an average price of $27,053 per Bitcoin. This strategic move by MicroStrategy occurred while the crypto market was still grappling with the aftermath of the bearish trend experienced in August.

Over the past few months, MicroStrategy has methodically amassed Bitcoin, significantly bolstering its cryptocurrency holdings. Between August 1 and September 24, the company accumulated an impressive 158,245 BTC. However with such an investment the present market value of these assets doesn’t quite reach the purchase price resulting in a decrease of 12%.

For MicroStrategy to reach a breakeven point or make a profit from its Bitcoin investments, the price of Bitcoin would have to rise to $29,582, per BTC. This represents a 13% increase, from its trading price of $26,116.

This recent acquisition further solidifies MicroStrategy’s stature as a major player in the realm of Bitcoin investments. Their earlier purchase of 12,333 BTC in June 2023, amounting to $347 million, underscores their unwavering bullish stance on this digital asset.

Nonetheless, MicroStrategy’s dedication to Bitcoin has not been without its challenges. Their Q2 2023 earnings report revealed operating expenses, including impairment losses of $24 million on their digital assets, in stark contrast to the previous year when impairment losses reached a substantial $917 million in the same quarter.

While MicroStrategy continues to bet on Bitcoin’s promising future, the crypto market remains a volatile arena, with regulatory decisions looming on the horizon. Notably, the SEC is poised to make a pivotal decision on spot Bitcoin ETF applications in October 2023. These developments underline the evolving narrative of the crypto market and the unwavering belief in the potential of Bitcoin as a store of value.