MicroStrategy's Bitcoin Purchases Tend to Be Short-Term Negative for Prices, Research Shows

CoinDesk
CoinDesk

28 Jun 2023 2:22 PM

Past data shows bitcoin tends to drop 2% on the day MSTR announces new purchases....

  • Business intelligence firm MicroStrategy has purchased over 12,000 bitcoin for $347 million, increasing its total bitcoin holdings to 152,333 BTC.
  • The announcement did not have a significant impact on the bitcoin market, with prices remaining within the $30,000 to $31,000 trading range.
  • Historical data suggests that previous announcements of bitcoin purchases by MicroStrategy have led to short-term negative price action, but the impact tends to reverse in the following days.
  • MicroStrategy started adding bitcoin to its balance sheet three years ago as a hedge against monetary policy, and its CEO believes the crypto market will become BTC-centric due to regulatory crackdowns.

The sentiment of the article is neutral. It provides information about MicroStrategy's bitcoin purchase and its impact on the market without expressing a positive or negative opinion.

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