[Bitop Review] MicroStrategy Doubles Down on Bitcoin, BTC Dips to $93K as Market Rotates to Ethereum
MicroStrategy, a company that has positioned itself as a Bitcoin advocate, announced late last night that it had purchased an additional 55,500 BTC for approximately $5.4 billion, averaging $97,862 per coin. As of November 24, 2024, MicroStrategy holds a total of 386,700 BTC, acquired at a cost of around $21.9 billion, with an average cost of $56,761 per coin.
Founder Michael Saylor boasted that MSTR has achieved a 59.3% return on BTC year-to-date, providing shareholders with a net profit of approximately 112,125 BTC, or about 341 BTC per day. Assuming a Bitcoin price of $100,000, this translates to a daily profit of $34.1 million, or $11.2 billion year-to-date for shareholders.
Bitcoin Plunges to $93K
Following MicroStrategy’s announcement, BTC prices took a sharp dive, hitting a low of $92,600 early this morning, representing a decline of over 4% in the past 24 hours.
Funds Shift to Ethereum; ETH Consolidates Above $3,400
With open interest on derivatives exchanges reaching a record high over the weekend, capital flows have favored Ethereum over the past few trading days. This indicates a shift of capital from Bitcoin to Ethereum, and derivative market activity suggests increasing confidence in ETH’s recent rally. ETH surged to $3,549 last night, making it the only top ten cryptocurrency by market cap to register gains yesterday.
Thanksgiving Holiday Could Amplify Market Volatility
This week’s focus will be on Wednesday’s Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Economists expect the October PCE index to show a year-over-year increase of 2.3%. With the US stock market closed on Thanksgiving Day (Thursday) and closing early on Friday, trading volumes are expected to be relatively light this week. However, lower trading volumes can also amplify market volatility, so investors should remain cautious.
Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.
