News has emerged that MicroStrategy has purchased even more bitcoin units. This would have otherwise been big news, but unfortunately, this little maneuver on the company’s part failed to make any sort of headway in the crypto space, and bitcoin is still trading for $48,000, which is where it’s been over the past few days.
MicroStrategy Has Purchased More Bitcoins
What does this mean, exactly? There are a few arguments one can make about this situation, the first being that there’s only so much influence a company can really have before its strength in a certain space or industry begins to wan. MicroStrategy was one of the first institutional platforms to pledge public support for bitcoin. Everyone was taken in by this and many investors thought it was a huge step forward, which it was.
The company began buying hordes of tokens beginning in August of 2020. The buying continued well into 2021 and it is now estimated that the company owns nearly $5 billion-worth of the world’s number one digital currency by market cap. Each time MicroStrategy has engaged in a major purchase of the asset, BTC has jumped by at least some margin within the next few days.
This time, however, things haven’t really moved much, which suggests that people are potentially getting bored of the idea that MicroStrategy sees bitcoin in such a powerful and positive light, and that bitcoin is now becoming “immune” to the company’s tactics.
Another argument could be that institutional investing in bitcoin is now becoming the norm, and so many companies have done it that another purchase is simply another purchase… nothing out of the ordinary. It used to be that when a firm such as MicroStrategy or Square or MassMutual invested hundreds of millions into BTC, the currency would swell up like a balloon. This has been the case for several months, and it’s long been stated that institutions are necessary to give bitcoin power and mainstream status.
Does This Mean Anything, Anymore?
However, once something becomes commonplace, it’s not likely to hold an equal amount of sway. Thus, if multiple institutions are investing in bitcoin and we’re now seeing situations like this on a regular basis, there’s a chance that some of the strength that institutions once held is going to dip somewhat. Thus, the idea of MicroStrategy buying more BTC at this point is nothing new, and the currency is not going to react the way it has in the past when institutional activity was rarer.
These arguments may seem accurate, though there are plenty of individuals that are likely to disagree. One is Inigo Fraser-Jenkins, head of global quantitative strategy at Sanford C. Bernstein in London. In a recent interview, he claimed that institutions have barely scraped the surface when it comes to investing in cryptocurrencies and that we’re still in an “early stage.”
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Source: Live Bitcoin News