Bitcoin (BTC) Hits New Record High Amid MicroStrategy (MSTR) Move

On Monday, December 16, bitcoin (BTC) rallied to a new high of $107,471. MicroStrategy (MSTR) founder and Chairman Michael Saylor announced its latest purchase:

Bitcoin (BTC) price hit a fresh record high on Monday, December 16, as MicroStrategy’s latest purchase coincided with news of the cryptocurrency’s demand remaining robust.

Bitcoin price saw a new record high of $107,471 on Monday, coinciding with MicroStrategy’s latest purchase and news of the cryptocurrency’s demand remaining strong.

MicroStrategy’s latest purchase comes as part of its ongoing BTC-acquiring strategy, with the company having now acquired a total of 15,350 BTC at an average price of around $100,386 each.

The company’s average BTC purchase price for the quarter now stands at $46.4%, while its year-to-date BTC yield is 72.4%.

As of December 15, 2024, MicroStrategy now hodls a total of 439,000 BTC, acquired at an average price of $61,725 each.

The acquisition also comes amid news of MicroStrategy’s inclusion in the Nasdaq 100, which is set to take effect from December 19.

Fresh record high comes amid news of Trump’s Strategic Bitcoin Reserve (SBR) plan

Bitcoin price hit a fresh record high on Monday, coinciding with news of US President-elect Donald Trump’s plans to establish a Strategic Bitcoin Reserve (SBR).

The news was reported by Axios, citing an Axios Pro Rata newsletter, which highlighted Trump’s intention to include the SBR in his administration’s upcoming economic agenda.

The report also noted that the Trump administration is considering allocating a portion of the Federal Reserve’s foreign exchange reserves to bitcoin.

However, the report also noted that the initiative is still in its early stages and could change before being formally announced.

BTC demand remained robust on Monday as investors considered Trump’s plans for a Strategic Bitcoin Reserve (SBR).

The news comes amid reports that the US President-elect is considering allocating a portion of the Federal Reserve’s foreign exchange reserves to bitcoin.

IG Market Analyst Tony Sycamore commented on BTC striking a new record high, saying,

“The fresh record high came after US President-elect Donald Trump confirmed he intends to establish a US Bitcoin strategic reserve.

While a meaningful pullback in Bitcoin has yet to materialize after its post-US election rally, we note the increasing signs of bearish divergence on the RSI.

Not a reason to fade the move but it does provide encouragement that a pullback to buy may not be far away.”

US BTC-Spot ETF Market Extends Inflow Streak

The US BTC-spot ETF market is on target to extend its net inflow streak to 13 sessions on Monday, the longest since February.

According to Farside Investors, excluding iShares Bitcoin Trust (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), total net inflows reached $218.7 million.

MicroStrategy’s purchase and sustained BTC-spot ETF continue tilting the supply-demand balance in BTC’s favor, driving BTC to new highs.

Bitcoin Price Outlook

BTC price rose by 1.51% on Monday, following Sunday’s 2.88% gain to close at $105,750, a new record close.

Near-term BTC price trends remain hinged on SBR developments, US BTC-spot ETF market flow trends, and US government BTC sales.

A significant BTC sale by the US government could refuel oversupply fears, potentially pulling prices below $100,000.