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Bitcoin Flies Above $59,000 After MicroStrategy’s Latest BTC Top Up

Bitcoin Flies Above $59,000 After MicroStrategy's Latest BTC Top Up
Bitcoin Flies Above $59,000 After MicroStrategy’s Latest BTC Top Up

Yerevan (CoinChapter.com) — Bitcoin was falling. But then, MicroStrategy happened.

The flagship cryptocurrency wiped the losses it had incurred during the Asia-Pacific and the European session Monday. Entering the New York trading hours, it jumped about 4.28 percent from its intraday low of $56,817 to cross above $59,000. The jump greatly coincided with an announcement from MicroStrategy.

Bitcoin kickstarts Monday US session with an upside move. Source: BTCUSD on TradingView.com
Bitcoin kickstarts Monday US session with an upside move. Source: BTCUSD on TradingView.com

The Nasdaq-listed business intelligence firm announced that it has added 253 bitcoin units worth $15 million to its reserves. It bought them at an average exchange rate of $59,339 per BTC, providing traders a psychological price floor from where they could bet their next bullish trades.

MicroStrategy’s latest bitcoin buy order increased its net BTC reserves to 91,579 units. The firm CEO Michael Saylor further revealed that they bought all the tokens at an average price of $24,311 per bitcoin. That means MicroStrategy’s position is now more than double its investments since its first bitcoin purchase in August 2020.

Back then, the company bought 21,454 Bitcoin for a total of $250 million, at about $11,652 per token. The buying continued, with Mr. Saylor announcing another purchase of $1 billion worth of bitcoin in December 2020. It injected another billion-dollar into its bitcoin balance sheets in February, upping its total holding to 90,531 BTC after raising the amount from a private convertible-note offering.

Bitcoin Market Outlook

Independent market analyst Scott Melker spotted more catalysts behind the US session-led Bitcoin surge. In a tweet published earlier, the WOAS Podcast host noted that the cryptocurrency’s climb on Monday originated from a decline in the US dollar index. He added that most of the assets that denominates their value in the dollar rose in tandem.

The dollar fell 0.48 percent on Monday against a basket of top foreign currencies. Meanwhile, the US stock market surged, with the benchmark S&P 500 index adding 1.2 percent, and its peers, the Nasdaq Composite and the Dow Jones, climbing by 1.2 percent and 1 percent, respectively.

Bitcoin now eyes an extended climb towards $60,000, a level that it has repeatedly tested for a bullish breakout only to pullback later.

“With a comeback that just happened with BTC, this week maybe the week to $82,000,” commented one trader.

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Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

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