MicroStrategy, a business intelligence and software company, has made another massive Bitcoin (BTC) purchase. The firm’s CEO, Michael Saylor, announced on September 25 that his company has bought another 5,445 BTC for about $147.3 million. This brings the average cost of each BTC to around $27,053. As of September 24, the company holds 158,245 BTC, worth a whopping $4.68 billion, with an average price for each BTC around $29,582.
MicroStrategy’s latest purchase comes amid another week of outflows from the crypto markets. According to the latest weekly fund flows report by CoinShares, crypto investment products saw $9 million worth of outflows. This is the sixth consecutive week of outflows from the crypto markets. Moreover, Bitcoin (BTC) is once again leading the list of assets, seeing the most outflows. The original cryptocurrency saw $5.9 million worth of outflows, while Ethereum (ETH) followed second with $2.2 million.
While BTC and ETH saw outflows, some altcoins like Solana (SOL), Litecoin (LTC), and XRP saw minor inflows. SOL saw inflows of $0.3 million, LTC saw inflows of $0.5 million, and XRP saw inflows of $0.7 million. This pattern was also observed in the previous week, with SOL seeing inflows of $0.7 million and XRP seeing inflows of $0.13 million.
The development is interesting given that a US court has given the green light to defunct exchange FTX to liquidate its SOL holdings. While the fears about a $685 million liquidation still loom, investors and users don’t seem bothered.
However, Bitcoin and the larger crypto market could face fresh volatility this week in light of the economic announcements that are due. The US Fed will release its PCE data, along with the revised numbers for the US’s Q2 GDP growth. Additionally, Fed Chair Jerome Powell is scheduled to give his speech this Thursday, which may give hints about future economic policies. At press time, Bitcoin (BTC) was trading at $26,043.68, down by 2.0% in the last 24 hours.
MicroStrategy’s latest Bitcoin purchase is a sign of the company’s continued conviction in the cryptocurrency’s long-term potential. The company has been steadily accumulating Bitcoin since August 2020, and its latest purchase brings its total holdings to over $4.6 billion.
The fact that MicroStrategy is making such large investments in Bitcoin amid a period of market volatility is a significant bullish signal. It suggests that the company believes that Bitcoin is still undervalued and that it has the potential to generate significant returns for investors in the long term.
The outflows from Bitcoin and Ethereum are likely due to a number of factors, including the recent market downturn, concerns about rising interest rates, and regulatory uncertainty. However, it is important to note that these outflows are relatively modest in comparison to the size of the overall crypto market.
The fact that some altcoins, such as SOL, LTC, and XRP, are still seeing inflows suggests that there is still some demand for riskier assets among crypto investors. However, it is important to note that these inflows are also relatively modest, and it is too early to say whether they represent a reversal of the recent trend of outflows from the crypto market.
The upcoming economic announcements from the US Fed have the potential to cause significant volatility in the crypto market. If the Fed’s PCE data is higher than expected, it could lead to concerns about further interest rate hikes and a stronger US dollar. This could have a negative impact on Bitcoin and other cryptocurrencies.
On the other hand, if the Fed’s PCE data is lower than expected, it could lead to hopes of a less aggressive approach to monetary policy. This could have a positive impact on Bitcoin and other cryptocurrencies.
Overall, MicroStrategy’s latest Bitcoin purchase is a positive sign for the cryptocurrency market. However, investors should be aware of the potential for volatility in the coming weeks and months due to the upcoming economic announcements from the US Fed.
