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On Monday, business intelligence firm Microstrategy announced the purchase of additional bitcoin (btc) as the market's largest cryptocurrency hit a new all-time high of $82,500, with increased inflows into various sectors of the ecosystem over the past week.
MicroStrategy Now Holds Nearly $23 Billion in bitcoin
in a x.com/saylor/status/1855959543508828428″ target=”_blank” rel=”nofollow”>social media post By bitcoin bull Michael Saylor, the company announced that it had acquired approximately 27,200 btc for approximately $2.03 billion. This transaction is one of the largest btc purchases to date by a corporate entity, but is in line with the company's strategy of integrating cryptocurrencies into its financial framework.
According to a bitcoin-in-latest-purchase” target=”_blank” rel=”nofollow”>statement Posted on Monday, these acquisitions took place between October 31 and November 10, using proceeds from recent stock sales.
With this latest purchase, MicroStrategy now owns nearly $23 billion worth of bitcoin, totaling approximately 279,420 btc with an average purchase price of approximately $42,692 per bitcoin.
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Michael Saylor also revealed that the company's MSTR treasury operations since early November have resulted in a btc return of 7.3%, representing a net profit to shareholders of nearly 18,410 bitcoin.
However, this strategy has also had a notable impact on Microstrategy's MSTR stock, which rose 11% on Monday when the announcement was made and is currently trading at approximately $299 per share, up from $270 a week earlier.
Post-election lockdown
The current bullish trend in bitcoin price also coincides with a notable shift in investor sentiment following Donald Trump's victory in the recent US presidential election against Vice President Kamala Harris.
According According to CoinShares, digital asset investment products saw inflows of $1.98 billion following the election, marking the fifth consecutive week of positive inflows and bringing the year-to-date total to a record $31.3 billion.
Along with the largest cryptocurrency on the market, global assets under management (AuM) in cryptocurrencies have reached an all-time high of $116 billion.
Inflows were predominantly driven by US investors, which contributed $1.95 billion, while European markets also saw smaller inflows, particularly in Switzerland and Germany. bitcoin alone attracted $1.8 billion of these inflows, reflecting a broader trend that has emerged since the US Federal Reserve (Fed) cut interest rates in September.
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Susannah Streeter, head of money and markets at Hargreaves Lansdown, crypto-market-today.html” target=”_blank” rel=”nofollow”>noted that the bullish momentum in the cryptocurrency market is driven by a sense of “euphoria” following Trump's election.
Streeter commented that his promise to “go all in on crypto” has taken btc to “heady new heights” and ultimately believes that Trump's shift toward supporting the cryptocurrency industry has created an environment more favorable regulatory environment, which has increased investor confidence.
To further support this sentiment, Citi strategists highlighted that cryptocurrencies remain one of the few Trump-related trades that has not retreated. They noted that their administration's expected crypto-friendly policies could lead to greater regulatory clarity in the US, further encouraging investment.
Overall, as bitcoin continues its bullish trend, some predict that btc could reach the $100,000 milestone by the end of the year, driven by a combination of favorable market conditions and growing institutional adoption.
At the time of writing, the market-leading cryptocurrency is trading at $82,479, up 20% in the last week alone.
Featured image of DALL-E, chart from TradingView.com
