Will MicroStrategy’s Bitcoin Purchase Mobilize Institutions?

• Many factors such as regulatory uncertainty have hindered corporate investments, but the situation can change thanks to MicroStrategy.
• After the events that caused the crash in 2022, most institutional investors have stayed away from Bitcoin and altcoins.
• These developments are important for Bitcoin. Firstly, MicroStrategy’s recent Bitcoin purchase contributed more than $300 million to the market value of Bitcoin.

Is MicroStrategy’s recent announcement of Bitcoin purchase an important factor for institutional investors to take action?

MicroStrategy Can Change the Balance

Bitcoin may experience a wave of institutional liquidity inflows. Many factors such as regulatory uncertainty have hindered corporate investments, but the situation can change thanks to MicroStrategy.

After the events that caused the crash in 2022, most institutional investors have stayed away from Bitcoin and altcoins. However, Michael Saylor, the founder of MicroStrategy, announced that his company purchased 12,333 BTC worth $347 million.

This was an important development for the Bitcoin community as it may indicate a return of institutional interest to cryptocurrency.

MicroStrategy’s recent Bitcoin purchase represented an important development for the crypto market. It may encourage more institutional investors to enter this space. Among many observations supporting a more attractive crypto environment for institutional investors, there is also the announcement of a new solution called Ledger Enterprise TRADELINK by the company behind Ledger cold storage wallets. In other words, Ledger’s new product is designed to meet the needs of institutional users.

This development by Ledger is even more interesting from the perspective of ETFs. Because even if ETFs are rejected again, it will enable institutions to purchase Bitcoin more easily through self-custody method.

Will Bitcoin Benefit from These Developments?

These developments are important for Bitcoin. Firstly, MicroStrategy’s recent Bitcoin purchase contributed more than $300 million to the market value of Bitcoin. Such a large purchase is sufficient to support a higher base price. However, more importantly, when combined with other bullish developments, it has the potential to increase investor confidence.

Thanks to the rally it achieved in the past two weeks, Bitcoin has regained the $30,000 price range. At the time of writing, it is trading at $30,650. Whale activity strongly supported the rally. Additionally, addresses holding more than 1,000 BTC made purchases during the same two-week period.

Although the market currently appears bullish, Bitcoin traders should still be cautious. Especially if the recent ETF applications are rejected, the market can still undergo another bearish wave.