MicroStrategy’s bitcoin (btc) holdings have turned profitable for the first time since July this year, as the btc price surpassed $30,000.
MicroStrategy increases $132 million in paper profits
As of October 23, MicroStrategy held 158,245 btc worth $4.847 million, approximately $132 million more than the original amount invested, at an average rate of 29.870 per btc. In other words, the company has now earned at least $130 per coin.
MicroStrategy began purchasing bitcoin in 2020. The company increased purchases in 2023 as the price of btc recovered from extreme losses caused by the Federal Reserve’s rate-hiking policy and high-profile cryptocurrency bankruptcies and implosions.
In September 2023, MicroStrategy acquired 5,444 btc by raising an equivalent amount of capital, mirroring the approach that led the company to purchase approximately 12,333 bitcoin through fundraising earlier this year.
Michael Saylor, co-founder and president of MicroStrategy, shared data showing bitcoin‘s outperformance against traditional assets since the company adopted its cryptocurrency purchasing strategy in August 2020.
Will bitcoin price continue to rise until 2024?
Since May 2022, bitcoin has failed to establish clear bullish momentum after crossing $30,000. This scenario may repeat itself in the coming weeks. This, in turn, risks pushing MicroStrategy’s btc investment below its average purchase price once again.
More bearish signals come from bitcoin‘s daily Relative Strength Index (RSI), now at its most overbought levels since January 2023. As a rule of technical analysis, an overbought RSI (above 70) could cause btc price to fall or consolidate laterally.
A correction scenario will see bitcoin price heading towards its 50-day exponential moving average (50-day EMA; the red wave) near $27,720 in November, about 10% lower than current levels.
On the contrary, maintaining and confirming $30,000 as a new support level will open the door to the next major resistance zone at $32,000, a level not seen since May 2022.
Related: How High Can bitcoin Price Go in 2024?
From a fundamental perspective, a possible approval of a bitcoin exchange-traded fund (ETF) in the US serves as a strong bullish backdrop, according to CryptoQuant. He grades that the approval of a bitcoin ETF can increase the net market capitalization of bitcoin by $155 billion.
In turn, the price of each bitcoin would reach $50,000-$73,000 in 2024, which would undoubtedly become a boon for MicroStrategy, although the company says it will maintain its btc course even if the bitcoin ETF gets the green light.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.