- MicroStrategy adds to its Bitcoin portfolio with latest $347 million purchase.
- BTC addresses with more than 1,000 BTC started buying BTC and showed confidence in the coin.
Bitcoin [BTC] may be about to experience a wave of institutional liquidity inflows. Multiple factors, including regulatory uncertainty, have kept institutional investment at bay, but that could change thanks to MicroStrategy.
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In particular, most institutional investors have stayed away from Bitcoin and altcoins after the events that caused the 2022 crash. However, founder of MicroStrategy Michael Saylor just announced it that his company just bought 12,333 BTC worth $347 million.
This was an important development for the Bitcoin community as it could mark the return of institutional interest in the cryptocurrency.
The latest Bitcoin purchase from MicroStrategys represented an important development for the crypto market. This is because it could encourage more institutional investors to jump on board. This is not the only latest development underlining an improving climate for institutional investors.
Ledger, the company behind the Ledger cold storage wallets announced the launch of Ledger Enterprise TRADELINK. The latter is a new solution designed for institutional crypto investors. In other words, Ledger’s new product is designed to meet the needs of institutional users.
The Ledger development further adds to the list of observations that currently support a more attractive crypto environment for institutions. The timing of these developments also aligns with the hopes of institutions jumping back on the Bitcoin bandwagon through the recently filed ETFs.
Ledger’s new offerings are particularly interesting from an ETF perspective. This is because it is becoming easier for institutions to buy Bitcoin on their own, even if the ETFs are shot down again.
Will Bitcoin benefit from these developments?
There is no doubt that the above developments are important for Bitcoin. For starters, MicroStrategy’s recent Bitcoin acquisition just added over $300 million to Bitcoin’s market cap. Such a large purchase is enough to support a higher floor price. But more importantly, it has the potential to boost investor confidence, especially when combined with other bullish developments.
Bitcoin has reclaimed the $30,000 price range thanks to the rally it has achieved over the past two weeks. It changed hands for $30,156 at the time of writing. Whale activity strongly supported the rally. In addition, addresses with more than 1,000 BTC purchased during the same two-week period.
Source: Glassnode
Read about the Bitcoin price prediction for 2023/2024
Although the market currently looks bullish, Bitcoin traders should proceed with caution. This is because the market could still trigger another bearish wave, especially if recent ETF filings are shot down.
