Michael Saylor’s Strategy has doubled down on its Bitcoin bet

Michael Saylor's Strategy has doubled down on its Bitcoin bet, acquiring 15,355 BTC for $1.42 billion at an average price of $92,737. This marks its third mega-purchase this April after buys of $555.8 million at $84,785/BTC and $285.8 million at $82,618/BTC. With a 13.7% YTD yield on its BTC holdings, Bitcoin price consolidates near $96k ahead of the May 7 Fed meeting.

An interesting observation on the daily Bitcoin price chart is the extended bull runs after the 1-day RSI has crossed above 70. Such instances have historically resulted in 40% to 70% up moves in the next 30 to 40 days. As of May 3, Bitcoin's daily RSI has just crossed the 70-mark. If history repeats, this could be the last time to accumulate Bitcoin below $100k.

Will Bitcoin price continue its ascent beyond $100k? Apart from technicals a macroeconomic policies, Trump's trade war negotiations also impact the price of BTC.

Critical Bitcoin Levels to Watch

With Nonfarm Payrolls out of the way, another volatile event, the Fed meeting on May 7, looms, which could induce volatility. Here are some key levels to watch for Bitcoin (BTC).

Resistance Levels:

* $100,000

* $105,000

* $110,000

Support Zones:

* $90,000

* $80,000

* $70,000

To conclude, the overall Bitcoin price prediction remains bullish with targets beyond $100k in 2025. However, investors need to be cautious as BTC could chop around before it embarks on an exponential uptrend.

Frequently Asked Questions (FAQs)

1. What recent Bitcoin purchase did MicroStrategy make?

After averaging around $84,785 for its last buy in April, and $82,618 for the penultimate purchase, Michael Saylor's firm, MicroStrategy (NASDAQ:MCRL), has reportedly made a third mega-Bitcoin purchase this month.

According to a new report by Bloomberg, the firm bought 15,355 BTC for $1.42 billion at an average price of $92,737. This purchase follows two previous large-scale acquisitions of 555.8 BTC at an average price of $84,785 and 285.8 BTC at an average price of $82,618, totalling approximately $555.8 million and $285.8 million, respectively.

The new purchase brings MicroStrategy's total BTC holdings to 150,000, the report adds.

The purchase comes as the price of Bitcoin is seen consolidating near the $96,000 mark following a recent rally from the $70,000 lows. It is also worth noting that the May 7 Fed meeting could potentially induce volatility in the markets.

Earlier this year, in March, MicroStrategy's founder, Michael Saylor, disclosed during an interview with the "Decrypt" podcast that the firm's Bitcoin treasury had achieved a 13.7% year-to-date (YTD) yield.

During the conversation, Saylor expressed his belief that the current macroeconomic environment, characterized by high inflation and a looming recession, makes investing in equities, real estate, or bonds less appealing compared to hard assets like Bitcoin.

"We're in a period of very high inflation, very low interest rates, and a pending or unfolding recession. In such an environment, investing in equities, real estate, or bonds doesn't make sense. We need to be investing in a very hard asset that has intrinsic value and can't be printed by the government or a central bank."

An interesting observation on the daily Bitcoin price chart is the extended bull runs after the 1-day RSI has crossed above 70. Such instances have historically resulted in 40% to 70% up moves in the next 30 to 40 days.

As of May 3, Bitcoin's daily RSI has just crossed the 70-mark. If history repeats, this could be the last time to accumulate Bitcoin below $100k.

But will Bitcoin price continue its ascent beyond $100k? Apart from technicals a macroeconomic policies, Trump's trade war negotiations also impact the price of BTC.