MicroStrategy’s Bitcoin holdings have reached a significant milestone following a $243 million investment to buy the dip. The company now holds over 450,000 Bitcoin, acquired at an average price of $62,691, totaling $28.2 billion.
This achievement was announced by MicroStrategy founder and chairman, Michael Saylor, in a post on X on January 13. The purchase was made during a week-long correction period, starting on January 7, when Bitcoin’s price fell below the psychological mark of $100,000, according to Cointelegraph Markets Pro data.
Crypto hedge funds have also taken advantage of the dip, resulting in a near seven-year low in Bitcoin exchange reserves on January 13. This diminishing supply on exchanges may indicate an upcoming price rally driven by a “supply shock,” where strong buyer demand meets a decreasing amount of BTC, leading to further price appreciation.
Bitcoin’s vulnerability to macroeconomic drivers has been highlighted. It surpassed the $100,000 record high on December 6, 2024, following Donald Trump’s victory in the 2024 US presidential election. However, the positive news related to the upcoming Trump administration has already been priced in, leaving Bitcoin susceptible to macro drivers. Bybit Research states that Bitcoin and crypto have become reactive to macroeconomic news, particularly the slower pace of anticipated rate cuts by the Fed in the new year.
Bitcoin’s dip below $92,000 was mainly attributed to the release of stronger-than-expected Job Openings and Labor Turnover Survey (JOLTS) data on January 9, which emphasized the strength of the US labor market, according to Bybit researchers.
Other analysts also point to macroeconomic factors as the main cause of Bitcoin’s decline. Ryan Lee, chief analyst at Bitget Research, believes that Bitcoin’s dip is primarily driven by strong US economic data indicating potential interest rate hikes, making cryptocurrencies less attractive as investments.
Despite concerns about interest rates, other companies are also taking advantage of the Bitcoin dip. On January 13, Nasdaq-traded Semler Scientific announced its purchase of 237 BTC worth $23.3 million at an average price of $98,267.