- The supply of BTC on exchanges fell while off-exchange supply increased.
- However, selling sentiment dominated the derivatives market.
Bitcoins [BTC] The price has been moving sideways for quite some time as the coin dipped comfortably below the $30,000 level. However, despite the slow price action, MicroStrategy announced its plans to acquire a significant amount of BTC.
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MicroStrategy’s actions have often been viewed as a leading indicator for Bitcoin. Will MicroStrategy’s decision to acquire more BTC motivate retail investors to increase their accumulations?
MicroStrategy’s Bitcoin buying trend looks interesting
An analyst from CryptoQuant recently pointed this out analysis via MicroStrategy’s BTC buying trend. The company announced an additional purchase of 467 bitcoins, bringing the company’s assets under management to 152,800 units. These coins were purchased by MicroStrategy for a total of $4.53 billion, for an average price of $29,672 per coin.
MicroStrategy has increased its purchase rate this year, acquiring a total of 20,300 BTC. According to the analysis, the annual growth was more than 150% until August 2023 compared to 2022, when the company added 8109 BTC to its balance sheet.
Source: CryptoQuant
MicroStrategy made this decision to increase accumulation ahead of the upcoming BTC halving. Historically, the price of BTC has always hit new highs a few months after the halving. For reference, after the 2020 halving, Bitcoin experienced a phenomenal surge in late 2020 and early 2021, breaking previous records and rallied about 600% in just under 7 months.
Given the potential for growth, MicroStrategy might have jumped at the opportunity to acquire more coins while the price of the king of cryptos remained below the $30,000 mark.
Are Retail Investors Buying Bitcoin?
While institutional investors increased their holdings, a look at Bitcoin’s metrics showed that retail investors were also piling up their holdings. According to Santiment’s diagram, BTCSupply on exchanges decreased while supply off exchanges increased.
This metric suggests that the coin has been under buying pressure. Additionally, whale activity around BTC also remained high, which looked bullish.
Source: Santiment
To read Bitcoins [BTC] price prediction 2023-24
BTC’s foreign exchange reserves also fell, which is further evidence that investors were buying the coin. However, buying pressure may not have an impact BTCThe price will have a positive effect in the short term. Its SOPR was red, meaning more investors were selling at a profit.
The derivatives market was also looking bearish as the BTC buyer-buy/sell ratio was in the red. At press time, BTC trade at $29,372.01 with a market cap of over $571 billion.
Source: CryptoQuant
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