What happened?
On November 10th, the price of Bitcoin broke through the $81,000 mark, and the Crypto Fear and Greed Index rose to 78, entering the “extreme greed” zone. This is the highest point since April this year, indicating that market sentiment remains optimistic.
As the price of Bitcoin continues to rise, there has been a significant increase in interest in the search term “Bitcoin” on Google. Many long-term Bitcoin investors, such as MicroStrategy, Bhutan, and El Salvador, have also seen considerable profits recently.
With the upcoming Bitcoin halving event in 2024 and the expectation of relaxed cryptocurrency policies under the presidency of Donald Trump, the market sentiment has significantly increased. Analysts predict that Bitcoin may have even greater room for growth before January 20, 2025, when Trump takes office.
MicroStrategy’s Bitcoin holdings exceed $20.5 billion, with strategic investments yielding over 104%
As the price of Bitcoin soared to a historical high of $81,617, MicroStrategy, an active buyer of Bitcoin, now holds over $20.5 billion worth of Bitcoin, with investment returns reaching 104%. This demonstrates their strong strategic patience and foresight.
So far, MicroStrategy remains the largest Bitcoin holder among global companies, followed by Bitcoin miners Marathon Digital and Riot Platforms, who hold $2.1 billion and $840 million worth of Bitcoin, respectively.
According to data platform “Saylor Tracker,” MicroStrategy has purchased a total of 252,200 Bitcoins in 42 transactions at an average cost of $39,292. The company plans to raise an additional $4.2 billion over the next three years to continue expanding their investment and acquisition plans.
MicroStrategy’s founder, Michael Saylor, has been actively promoting the long-term strategy of using Bitcoin as a corporate asset reserve. His continuous buying actions have not only driven the market value of Bitcoin but also influenced the investment decisions of other large institutions.
Market experts point out that as Bitcoin is further included in institutional portfolios, the supply and demand balance in the market may continue to push Bitcoin prices higher, providing long-term support for its future performance.
The weekend’s surge is particularly positive for Bitcoin ETFs and Bitcoin-related stocks.
For example, iShares Bitcoin Trust ETF (IBIT) rose 11% to $43.69 last week, reaching a historical high, and the stock price of Coinbase exchange (COIN) also rose 48% to $270.74.
Other companies, such as Bitcoin miner Terawulf Inc (WULF) and CoinShares Valkyrie Bitcoin Miners ETF (WGMI), have also reached new highs in their stock prices this year due to the popularity of Bitcoin.
Global Bitcoin frenzy, Bhutan and El Salvador benefit from holding Bitcoin
The rise of Bitcoin has also led to increased value in other countries’ crypto asset holdings.
Since 2021, El Salvador has announced its Bitcoin investment strategy, continuously purchasing 1 Bitcoin per day. They have now accumulated over 5,930 Bitcoins with a market value exceeding $482 million, and their investment has grown by 80%.
El Salvador not only benefits from the appreciation of Bitcoin reserves but also increases revenue for the national treasury through the “Passport Program” that offers residency visas and citizenship to those willing to buy $1 million worth of Bitcoin, as well as the “Volcano Mining Project.”
Although initially criticized when entering the cryptocurrency market during a bull market and experiencing continuous price declines, El Salvador’s strategy seems to demonstrate stable growth benefits after the significant rebound in Bitcoin prices, gradually changing outsiders’ perception of their investment policies.
In addition, according to data from blockchain analysis company Arkham Intelligence, Bhutan’s Bitcoin holdings have now exceeded $1 billion, accounting for 32% of the country’s GDP. Bhutan is one of the few countries in the world that has included Bitcoin as a national reserve asset.
Bhutan is also building large-scale Bitcoin mining facilities and hopes to consider Bitcoin as part of its strategic reserves to enhance its economic stability.
Reference:
cointelegraph, cointelegraph