Bitcoin back at $20K despite latest MicroStrategy purchase
The big news for Bitcoin was from MicroStrategy, purchasing an additional 480 bitcoins for about $10.0 million at an average price of $20,817 per coin. So far, the news hasn't impacted the price of Bitcoin as it continues to hover around that 20K handle. We will need to see a big reversal stick around current levels to give hope that we have seen at least a short-term low. While Bitcoin remains in danger of further falls, the big correction has increased the probability of a recovery in the not-too-distant future. Crypto enthusiasts just cannot wait until that happens. Patience is the name of the game.
As of yesterday, MicroStrategy now holds ~129,699 bitcoins acquired for ~$3.98 billion. That gives it an average price of ~$30,664 per bitcoin.
From an investing point of view, this is what you are supposed to do – buy more at lower levels. The company’s Chief Executive Officer Michael Saylor must believe that the downturn for bitcoin is nearing an end and that a recovery is nigh. To some degree, I agree with that viewpoint. It is just that it feels a bit like a gamble though as prices haven’t stabilised to give you confidence that a low is in just yet. I hope that doesn’t scare investors who are holding the company’s stock.
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