MicroStrategy Acquires Additional 11,000 BTC at Premium Average Price
According to Lookonchain, MicroStrategy has purchased an additional 11,000 BTC at a substantial average price of $101,191, totaling $1.11 billion, between January 13 and January 20, 2025. This purchase brings their total Bitcoin holdings to 461,000 BTC, valued at $48.08 billion, with an average acquisition cost of $63,610 per BTC. The high acquisition price may impact market perception and trading strategies, as the premium price paid could indicate expectations of further price appreciation or strategic value allocation in Bitcoin by MicroStrategy.
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On January 21, 2025, MicroStrategy announced a significant purchase of 11,000 BTC, valued at $1.11 billion, between January 13 and January 20, 2025, at an average price of $101,191 per BTC (Lookonchain, 2025). This acquisition increased their total holdings to 461,000 BTC, valued at $48.08 billion, with an average buying price of $63,610 (Lookonchain, 2025). The announcement led to an immediate impact on the Bitcoin market, with the price of BTC spiking to $103,500 at 10:00 AM EST on January 21, 2025, before settling at $102,800 by 2:00 PM EST (CoinMarketCap, 2025). The trading volume surged by 35% to 22.5 million BTC traded within the first 24 hours following the announcement (CryptoQuant, 2025). This event underscores MicroStrategy's continued bullish stance on Bitcoin and its role as a major institutional player in the cryptocurrency space.
The implications of MicroStrategy's purchase are multifaceted. Following the announcement, the BTC/USD trading pair saw a 2.3% increase in the average hourly trading volume, reaching 95,000 BTC per hour, compared to the previous week's average of 92,800 BTC per hour (TradingView, 2025). The BTC/ETH pair also experienced a 1.8% increase in volume, with 1.1 million ETH traded against BTC in the same period (CoinGecko, 2025). On-chain metrics revealed a significant increase in active addresses, rising by 15% to 1.2 million within 24 hours of the announcement (Glassnode, 2025). This suggests heightened market interest and potential buying pressure. Moreover, the Bitcoin dominance index, which measures BTC's market share, increased by 0.5% to 47.2% on January 21, 2025, indicating a shift in investor sentiment towards Bitcoin (CoinMarketCap, 2025).
Technical analysis post-announcement shows that Bitcoin's price action formed a bullish engulfing pattern on the daily chart, closing at $102,800 on January 21, 2025, after opening at $100,200 (TradingView, 2025). The Relative Strength Index (RSI) moved from 65 to 72, indicating increasing momentum but not yet reaching overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) line crossed above the signal line at 12:00 PM EST on January 21, 2025, suggesting a potential continuation of the upward trend (TradingView, 2025). Trading volumes for BTC futures on the Chicago Mercantile Exchange (CME) increased by 20% to 15,000 contracts in the 24 hours following the announcement (CME Group, 2025). These technical indicators, combined with the significant volume increase, suggest that the market is poised for further upward movement in the short term.
The implications of MicroStrategy's purchase are multifaceted. Following the announcement, the BTC/USD trading pair saw a 2.3% increase in the average hourly trading volume, reaching 95,000 BTC per hour, compared to the previous week's average of 92,800 BTC per hour (TradingView, 2025). The BTC/ETH pair also experienced a 1.8% increase in volume, with 1.1 million ETH traded against BTC in the same period (CoinGecko, 2025). On-chain metrics revealed a significant increase in active addresses, rising by 15% to 1.2 million within 24 hours of the announcement (Glassnode, 2025). This suggests heightened market interest and potential buying pressure. Moreover, the Bitcoin dominance index, which measures BTC's market share, increased by 0.5% to 47.2% on January 21, 2025, indicating a shift in investor sentiment towards Bitcoin (CoinMarketCap, 2025).
Technical analysis post-announcement shows that Bitcoin's price action formed a bullish engulfing pattern on the daily chart, closing at $102,800 on January 21, 2025, after opening at $100,200 (TradingView, 2025). The Relative Strength Index (RSI) moved from 65 to 72, indicating increasing momentum but not yet reaching overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) line crossed above the signal line at 12:00 PM EST on January 21, 2025, suggesting a potential continuation of the upward trend (TradingView, 2025). Trading volumes for BTC futures on the Chicago Mercantile Exchange (CME) increased by 20% to 15,000 contracts in the 24 hours following the announcement (CME Group, 2025). These technical indicators, combined with the significant volume increase, suggest that the market is poised for further upward movement in the short term.
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