Bitcoin price surpasses $57.000, what is happening?

Bitcoin (BTC) seems unstoppable as it performed an explosive price surge in the last 24 hours. The largest cryptocurrency briefly exceeded above $57.000, the highest price since more than two years. The price jump seems to be largely stimulated by yet another BTC purchase by MicroStrategy, an American software company that has been buying tokens since august of 2020. 

After displaying relatively boring price action during the last weeks the BTC price has shown a sudden disruptive surge as it took the price above a value of $57.000. The popular coin seemed range bound between $50.800 and $52.500, boring investors after the impressive run BTC showed during the first weeks of February.The 10% price surge in the past 24 hours have been one of the best performances of the coin in the past couple years. 

BTC purchase of MicroStrategy

A big reason for the surge is another big announcement from MicroStrategy. The company is the first public traded organisation on American markets that has purchased Bitcoins. Ever since 2020 the company has managed to accumulate 193.000 tokens, adding 3.000 BTC in its most recent purchase. Between 15 and 25 February the software company managed to buy the coins for a total price of over $155 million, resulting in an average price of around $51.800.   

The total BTC balance of MicroStrategy currently has a value of almost $11 billion whilst their investment is closer to $6 billion. Under lead of CEO Michael Saylor the company has managed to buy up over 0,9% of the max BTC supply and with its recent purchase the company is clearly showing it is not likely to stop or even sell their tokens. 

Bullish sentiment for Bitcoin 

The Bitcoin purchase of MicroStrategy further fuels the bullish sentiment in the market. At the same time the Bitcoin halving is coming closer. Exciting investors as the event has historically impacted the BTC price in a positive way. As miners receive less Bitcoin for validating new blocks on the netwerk selling pressure will decrease and therefore prices are more likely to rise. 

At the same time Bitcoin Spot Exchange Traded Funds (ETFs) remain popular and result in billions of dollars in capital inflow from institutional investors. Currently the BlackRock BTC ETF remains one of the most popular funds in the American markt. It recently managed to see a record amount of volume of more than $1,3 billion in a day. 


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