Leading American business intelligence firm MicroStrategy is not relenting in its quest of purchasing more Bitcoin, acknowledged by the firm’s CEO Michael Saylor.
The MicroStrategy CEO said:
“MicroStrategy has purchased an additional 13,005 Bitcoins for ~$489 million in cash at an average price of ~$37,617 per bitcoin. As of 6/21/21 we hodl ~105,085 bitcoins acquired for ~$2.741 billion at an average price of ~$26,080 per bitcoin.”
MicroStrategy has set a precedent in the institutional investment space because its BTC holding is one of the highest.
Previously, Saylor had indicated that the firm was embracing Bitcoin for the long term.
MicroStrategy, therefore, seems to be taking advantage of the current ranging BTC market because it has spent the last two months consolidating between $30,000 and $40,000.
Bitcoin is back at the range low
Bitcoin plunged to lows of $32k amid intensified FUD (fear, uncertainty, and doubt) sentiment from China triggered by a nationwide BTC mining crackdown.
For instance, China’s third-largest bank, the Agricultural Bank of China, issued an announcement prohibiting bitcoin and other cryptocurrency transactions through Agricultural Bank’s banking system.
These restrictions imposed by Chinese banks on cryptocurrencies caused a large-scale sell-off of the Bitcoin bearish side.
Therefore, market analyst Michale van de Poppe noted that Bitcoin was back at the range low, and the leading cryptocurrency needed to hold this area to avoid a further drop to $24k.
On-chain analyst Ali Martinez echoed these sentiments. He stated:
“On-chain data from IntoTheBlock shows that the most significant support zone underneath Bitcoin sits between $31.7K and $33.5K where roughly 573K addresses bought 487K BTC. Losing this area as support could push BTC to the next critical demand barrier at $23.4K.”
With retail momentum on the Bitcoin network slowing down amid sinking social sentiment, it remains to be seen whether renewed institutional interest from firms like MicroStrategy will give BTC the much-needed upward momentum.
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