Last night, MicroStrategy founder Michael Saylor tweeted that last week MicroStrategy purchased 2,138 BTC, worth $209 million, continuing its record of buying for eight consecutive weeks.
It is reported that Michael Saylor has publicly stated that the company will continue to buy Bitcoin at any price, even if the price soars to 1 million dollars. According to official reports, MicroStrategy has accumulated a total of $22 billion this year to increase its holdings of 257,250 Bitcoins. As of December 30, the company holds 446,440 BTC, with a market value of 4.15 billion dollars, a quarterly return of 47.8%, and an annual return of 74.1%, which to some extent reflects the success of its strategy.
Although MicroStrategy has achieved significant success in Bitcoin investment, its stock (MSTR) performance has been unsatisfactory recently. After MSTR was included in the Nasdaq-100 index, the stock price fell 30% in just two weeks, and has retraced over 40% from the November peak of $542. This price volatility has sparked much speculation about MicroStrategy's future performance. Joe Burnett, head of market research at Unchained, stated that MicroStrategy's current strategy is 'hyper-Bitcoinization.' Felix Hartmann, founder of Hartmann Capital, said that MicroStrategy's stock price 'will ultimately crash, but most short sellers will choose the wrong timing, leading to failed bets against BTC and MSTR.'
However, even though MSTR's stock price has seen a significant retracement in the past 30 days, it has gained over 330% compared to the beginning of the year, far exceeding most market performances.
According to data from AICoin (aicoin.com), after previous announcements of MicroStrategy's increased holdings, Bitcoin usually experiences a period of significant volatility, but tends to fall more than it rises.
The above screenshot is sourced from AICoin's multi-screen and multi-window feature.
According to AICoin editor's sharing, to capture this type of news-driven market, you can use the PRO tool - large transactions.
Taking last night's MicroStrategy increase as an example:
On December 30 at 21:02, after the news of MicroStrategy's increased holdings was disclosed, large Binance spot traders urgently sold off, executing a market order of $63.16 million, putting pressure on BTC, which fell by 2.29%.
According to large transaction statistics, after BTC fell below the $92,000 support level, large traders began to buy the dip, and after buying $14.91 million, the price rebounded, rising over 3.4%. During the rebound, the major players continued to buy until the price entered a pressure zone, then turned bearish and sold $5.82 million, causing BTC to adjust again by 3.28%. When Bitcoin tested a key support level again, bulls intervened, buying $16.78 million at market price, preventing further price declines.
In summary, when good news appears, do not blindly go long; first, judge the actions of major players. If large traders sell off, it is likely to lead to a wave of panic selling; conversely, if large traders enter the market, the market may rise. In short, follow the operations of large traders.
Additionally, news-driven market responses are very rapid. To capture firsthand news, it is recommended to lock onto the PC or APP section 【Quick News - Twitter】 to stay ahead of market trends!
Editor’s popular science:
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• Large transactions: PRO special tool, can track major market price transaction conditions in real-time, experience it now: https://www.aicoin.com/vip
Recommended reading: (Is it market price dumping or a limit price conspiracy? Revealing the truth behind BTC's major manipulation)
Content is for sharing only, for reference only, and does not constitute any investment advice!
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