Michael Saylor’s Strategic Bitcoin Acquisition: A New Chapter in May
In a recent development, co-founder and chairman of Strategy, Michael Saylor, has unveiled a significant Bitcoin acquisition by the company. This move sets the stage for an intriguing progression throughout May, drawing insights from historical patterns.
Strategy Bolsters Bitcoin Holdings with 1,895 BTC Purchase
Michael Saylor announced that Strategy has augmented its Bitcoin portfolio by acquiring 1,895 BTC, purchased at an average price of $95,167 during the period from April 28th to May 4th. This substantial investment, totaling $180.3 million, elevates the firm’s total Bitcoin holdings to an impressive 555,450 BTC. The cumulative investment by the company in Bitcoin has reached a staggering $38.08 billion.
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Over recent months, Strategy has actively increased its Bitcoin purchases, drawing attention from analysts. Notably, CryptoQuant community analyst Maartunn has observed a recurring pattern in these acquisitions.
Analyzing Strategy’s Bitcoin Purchase Patterns
Maartunn notes, “The initial purchase by MicroStrategy each month tends to be the smallest. As the month progresses, the volume of purchases grows.” This month’s acquisition of 1,895 BTC marks the first for May, suggesting that subsequent purchases could be larger, based on historical trends.
Currently, the company’s Bitcoin reserves have an average cost basis of approximately $68,550. With the current exchange rate of Bitcoin, Strategy is sitting on a profit margin of about 38%, indicating that Saylor’s strategic investments are yielding positive results.
Insights into Bitcoin’s Market Dynamics
In other news, CryptoQuant author Axel Adler Jr has provided insights into Bitcoin’s market behavior through the Composite Volatility Index (CVI), a metric developed to assess market phases.
Adler Jr explains, “Evaluating Bitcoin address activity, which informs the CVI and its 30-day changes, helps identify macro phases in the market.” The accompanying chart reveals the daily value and 30-day variation of the index over recent years.
Current Market Sentiment
The 30-day change in the CVI has recently turned negative, currently at -3.5%. According to Adler Jr, a negative change signifies an accumulation phase, indicating that investors are currently acquiring more Bitcoin. Conversely, a positive change above 15% would denote a distribution or panic-selling phase.
Bitcoin’s Price Movement
Earlier today, Bitcoin experienced a decline to levels below $94,000. However, it has since rebounded and is presently trading at approximately $94,800.
Tracking Bitcoin’s Recent Price Trends
The chart below illustrates Bitcoin’s price movement over the past five days, reflecting its resilience and potential upward momentum.
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