MicroStrategy, as the company with the world’s most significant Bitcoin holdings, has once again bought the coins of the mother of all cryptocurrencies. The interest in Bitcoin has today driven its price above the $30,000 mark. MicroStrategy has bought massive amounts of BTC!
On 5 April 2023, the former CEO and still major shareholder Michael Saylor announced on Twitter that MicroStrategy could repay a $205 million loan to insolvent Silvergate Bank. Since this only had to be paid at a discount due to the insolvency, new funds were freed up, which were used for a massive purchase of Bitcoin, among other things.
Thus, the whale bought 6.500 more coins, presumably 150 million US dollars. But is this renewed strong entry a buy signal? After all, Bitcoin can gain about four percent again on Wednesday and is thus approaching its high for the year again. Even if it looks good: Chart-wise, it would not be surprising if Bitcoin would again test its 50-day line and an already overcome downtrend at around $24,000 as support.
Not yet, because the negative news situation currently outweighs the cryptos. Although Bitcoin is still relatively unfazed by the news of the wave of lawsuits filed by the SEC against crypto companies, the bounce from the $28,000 level has led to a significant drop below the $27,000 level.
With the fall of this support line, Bitcoin is now trapped in a holding pattern, waiting for news for a further rise or sell-off. Therefore, the currency could be more interesting for short-term speculation. However, the current price consolidation is a good time for long-term investors who believe in a further rise to fill their pockets again.
