MicroStrategy’s Bitcoin holdings have reached a significant milestone following a $243 million investment to buy the dip. The company now holds over 450,000 Bitcoin (BTC), acquired at an average price of $62,691 for a total of $28.2 billion. MicroStrategy founder and chairman Michael Saylor announced the milestone in a post on X on January 13. The purchase was made during a weeklong correction period, with Bitcoin’s price falling below $100,000 starting from January 7, according to Cointelegraph Markets Pro data.
Crypto hedge funds have also been taking advantage of the dip, leading to a decrease in Bitcoin reserves on exchanges to a near seven-year low on January 13. This diminishing supply on exchanges may indicate an upcoming price rally driven by a “supply shock,” where strong buyer demand meets a decreasing amount of BTC, resulting in price appreciation.
However, Bitcoin’s vulnerability to macroeconomic drivers is a concern. Despite surpassing the $100,000 record high on December 6, 2024, the positive news related to the upcoming Trump administration has already been factored into the market, making Bitcoin reactive to macroeconomic news. The slower pace of anticipated rate cuts by the US Federal Reserve in the new year has led to the dip below $92,000. Strong US economic data and potential interest rate hikes have made cryptocurrencies less attractive as investments, according to analysts.
Despite these concerns, other firms, such as Nasdaq-traded Semler Scientific, have also taken advantage of the Bitcoin dip. On January 13, the company announced the purchase of 237 BTC worth $23.3 million at an average price of $98,267.