Despite experiencing a notable decline of nearly 50% from its all-time high of $126,000, the demand and interest in Bitcoin on the institutional level have not yet lost their momentum. Even during multiple market drawdowns, a massive accumulation of BTC was still strongly observed among many large firms across the cryptocurrency and financial landscape.
New Bitcoin Purchase Propels MicroStrategy
A crucial shift is taking place in Bitcoin accumulation among large firms across the sector. In the Bitcoin institutional race, Strategy formerly known as MicroStrategy has become a prodigy in BTC accumulation after years of acquiring the leading asset.
According to a recent report from Darkfost, a market expert and verified author at CryptoQuant, the company founded by Michael Saylor, a prominent figure in the crypto space, has now surpassed BlackRock, the largest asset manager, in total BTC acquired.
This flip comes after Strategy’s most recent BTC purchase, which saw over 34,164 BTC being scooped up. The aggressive accumulation approach has strengthened MicroStrategy’s position as one of the biggest corporate holders in the market and once again demonstrated its steadfast dedication to the crypto king.
Following the latest acquisition, the company now holds over 815,061 BTC, while BlackRock’s IBIT now controls over 802,823 BTC as of April 17. This event indicates a wider trend of increasing corporate conviction in Bitcoin as a strategic asset, in addition to highlighting the growing competition among institutional participants in the crypto and finance space.
With its current stash, Strategy now holds more than 4% of BTC’s total supply. As a result, the company continues to move closer to its initial stated objective of holding around 5% to 7% of the total supply in circulation.
Despite holding a huge amount of BTC, Strategy suffered notable losses as the asset’s price fell below the firm’s realized price of $75,527. However, after several market shifts, the price of Bitcoin has now moved back above Strategy’s realized price at the time of the post. Darkfost stated that this brings an end to the period of unrealized losses that started in early February this year. As of today, Strategy has once again projected profits of $242 million.
The BTC Bear Market Still Alive
While Bitcoin’s price has slightly picked up pace following the market rebound, underlying signals continue to point to weakness in the broader trend. Such signals imply that BTC’s recent upward trend is likely to be temporary, and a decline is still heavily on the table.
After navigating multiple on-chain metrics, Alphractal, a data analytics platform, highlighted that BTC’s bear market is not over yet, suggesting impending bearish periods. Over time, the Short-Term Holder Realized Price vs the Long-Term Holder Realized Price has been a key indicator in determining whether the market is still in a bear or bull phase.
Alphractal noted that the bear market will only end when the STH Realized Price drops below the LTH Realized Price. The platform’s analysis is backed by historical trends where this setup signaled the end of the bear market phase. At this point, it is crucial to monitor this current reading to determine whether the same pattern holds in the ongoing cycle.
Featured image from Pngtree, chart from Tradingview.com
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