- Microstrategy recorded a hike in its BTC holdings price due to recent upward movement.
- BTC reached the $30,000 level recently and raised hopes of further progress.
- However, analysts have mixed thoughts about it and aren’t sure about the future.
MicroStrategy Incorporated is a technology firm that provides quite a few services. It is mainly known for its cloud-based solutions, mobile software, and business intelligence. On the operational front, the company is doing a decent job. But when it comes to investment, it was not a very satisfactory job until recently. The company has Bitcoin holdings whose value has soared just now.
MicroStrategy’s Profits Soared By $132 Million
Back in 2020, MicroStrategy started investing in Bitcoin. In 2023, it even escalated its purchases due to the Federal Reserve’s interest rate hikes. As the Feds tweaked rates, it positively impacted the company’s earnings. Some major crypto bankruptcies played a role in it as well. MicroStrategy made profits and bought 5,444 BTC with the help of equal amounts of money.
Notably, it acquired over 12,333 BTC in the same way earlier this year. On 23 October, when BTC reached $30,000, the investments became prolific. At press time, the company holds 158,245 BTC whose value has reached $4.847 Billion. It recorded a spike of about $132 Million from the original amount. Currently, the Bitcoin is trading at $29,870 per coin. With the price rise, the firm holds cryptos worth $130 per coin.
On the occasion, the co-founder and chairman of MicroStrategy, Michael Saylor shared some insights. He said that Bitcoin is doing a lot better than the traditional assets. Especially since the company invested in it in August 2020. But at the same time, the markets are dubious that the uptrend will last long or not.
Will Bitcoin Price Hike Continue in 2024?
Since May 2022, Bitcoin has been on a bearish run. Some experts say that this uptrend is quite momentary right now. They even suggest that BTC may go bearish the very next week. If that happens, it would again prove MicroStrategy’s investment futile for at least some time. As per the Bitcoin’s daily relative strength index (RSI), it’s currently at the most overbought levels since January 2023.
According to a rule of technical analysis, this could actually backfire. An overbought RSI (especially above 70) could drive BTC’s price downwards. It can also consolidate sideways depending on the circumstances. If a correction scenario comes into the picture, it can push Bitcoin’s price downwards. It could pave the trajectory of a 50-day exponential moving average. This could bring down the BTC price to $27,720 in November.
In percentage, it would be a 10% fall from the current level. On the other hand, some say that the positive trend could just go on in 2024. If that happens, the price may even exceed the $32000 mark. As per CryptoQuant, the prospects of Bitcoin ETF draw a strong bullish drive. In fact, the approval can boost BTC’s market cap by $155 Billion. The analyst even says that if it happens, the price could be between $50,000 to $73,000 in 2024.
The crypto enthusiasts and investors have their fingers crossed as they’re observing the markets closely.