Microstrategy Purchasing Bitcoin Rocks the Crypto World – and Bitcoin Price
Just when it seemed like the Bitcoin price couldn’t reach any higher, MicroStrategy rocked the cryptocurrency world and sent the price of Bitcoin flying. And now, we have a research firm breaking down the impact their purchasing had.
Opportunity for All
At the start of the summer, MicroStrategy announced that it was going to start investing its capital reserves into Bitcoin and decentralize a portion of the company’s treasury assets. It was a shock to many, leaving them scrambling to adapt to the changing landscape of cryptocurrency.
While the news initially had a positive effect on the Bitcoin price, fluctuations have been much stronger since. And new research has broken down the direct impact of the purchasing on Bitcoin’s price.
Impact on the Price
According to the research, it was found that every time MicroStrategy made a new BTC purchase the Bitcoin price rose. On the flip side, each time they sold, there was usually a corresponding dip in the market.
Their buying frenzy during the second quarter of this year is one of the main reasons why the Bitcoin price has nearly doubled since. Not only that, but MicroStrategy’s purchases have also had a positive effect on other coins as well.
The Ripple Effect
It’s clear that much of the hype surrounding Bitcoin this year can be attributed to MicroStrategy’s long-term bullish moves. The ripple effect of the company’s investments has been felt across other coins, creating a self-sustaining surge of enthusiasm and investment in honor of the leading cryptocurrency.
The research firm concluded by stating, “It is evident that even large-scale purchases by institutional investors can have a lasting effect on the price of Bitcoin.”
The Future of Crypto
If the research is correct and the impact of MicroStrategy’s purchases is real, then the future of cryptocurrency looks bright indeed. What’s more, the impact of their investments has already become evident in the form of increased interest, investments, and trading in various coins.
Who knows, with a bit of luck, cryptocurrency could become the standard by the end of the year!
It looks like everyone – from die-hard Bitcoiners to institutional investors – can benefit from MicroStrategy’s purchases. The next time your friends or family tell you that Bitcoin is too risky, you can confidently point to MicroStrategy and tell them that even large organizations are investing heavily in the cryptocurrency. Who knows, maybe you’ll convince them to join you in your crypto adventures too!
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