The cryptographic scene was electrified recently as MicroStrategy disclosed its plan to increase its Bitcoin stockpile. The U.S software giant declared its scheme within an agenda presented to the U.S Securities and Exchange Commission, delineating an intent to sell almost $750 Million of its stocks, with a significant portion of the proceeds being utilized for Bitcoin acquisition. As of June 27th, MicroStrategy owned approximately 152,333 BTC, translating to a measly 0.0078% of Bitcoin’s total current supply. The company’s inclination towards this digital asset has been evident since August 2020, with their executive chairman and former CEO, famously a vocal Bitcoin advocate.
MicroStrategy’s commitment to using the net proceeds from their recent stock offering for “general corporate purposes,” including Bitcoin acquisition, has surged the anticipation amongst Bitcoin investors. The firm stands to gain an estimated 25,000 tokens from this venture, calculated at the current market price. However, a significant player like MicroStrategy entering the market has an inevitable consequence; driving the costs up.
This theory was substantiated by Bitcoin’s reaction to the announcement, with it reaching one-week highs and currently settling in the $29,700 range, a 4% increase from its previous level in the $28,500 range. This impressive leap suggests a possibility of short-term gains.
As the bull-run continues, backed by robust support from Key Long-term Support, adoption prospects appear brighter with increased Bitcoin ETF applications from Wall Street tycoons. Despite the looming threat of a recession, faith in the Fed’s ability to control inflation is growing, causing analysts worldwide to predict a solid correction rather than a deep bear market.
However, this optimistic landscape is not without its potential pitfalls. Factors such as potential regulation concerns re-emerging from the SEC, possible downgrading of the US government’s debt rating by Fitch, and potential turbulence in the DeFi space following the recent Curve hack could potentially hinder a near-term rally.
Still, nothing seems to fade the resolve of the Bitcoin enthusiasts as the spotlight turns to the all-important $30,000 level. The journey to the yearly highs seems more certain than ever, smeared with the colors of calculated optimism and restrained scepticism. A perfect cocktail for those who live and die by the swings of the crypto market.
Source: Cryptonews
