MicroStrategy company announced today that it has purchased 19452 Bitcoins on 24.02.2021. This purchase confused everyone because we were having a huge decline in Bitcoin prices. Because why does a company that already has so many Bitcoins at much better prices buy when prices are falling? Or are companies getting fomo and buying Bitcoins now, just as people were constantly getting fomo and buying bitcoin in 2017?
MicroStrategy company seems to have increased its total Bitcoin assets to 90531 with the Bitcoins it bought today. The average price of Bitcoins he bought today is $ 52765. Such a good price has not been formed in the market today. At the time of this writing, the Bitcoin price was trading at $ 49750. In this case, it is natural that we wonder why so much Bitcoin was bought at an expensive price.
You may think that everyone who hears the news is expecting an increase in prices optimistically. Perhaps the company has thought that prices will rise rapidly from here in the coming days. Instead of buying it higher, he may have thought that he should buy it when the ready price is around 50000. However, I want to warn you at some point.
MicroStrategy company owns a total of 90531 Bitcoins together with the Bitcoins it bought today, but it seems that it has paid an average of $ 23985, including transaction fees, to own these Bitcoins. So this purchase can be a false purchase. I always mention the possibility that companies can short Bitcoin. This step may have been done as part of a strategy. For example, he may think of increasing Bitcoin assets by opening a short position after the purchase, hoping that the Bitcoin price will increase a little. Of course, we cannot say that this will definitely be the case.
MicroStrategy company may also believe in a really big uptrend. The company's CEO, Michael Saylor, stated in a CNBC program he attended that "7-8 billion people will use Bitcoin" one day. Describing it as digital gold, Saylor said, "The world needs this thing."
It is useful to act by being aware of all these situations. Of course I believe in Bitcoin. I trust him. However, while the prices are falling, I also want to sell it from a higher prices and buy more from lower price. MicroStrategy company seems to have bought Bitcoin at a very low average price. So even if the prices drop too much, it is unlikely to have a loss. But what is your average price? How much risk can you take? Be careful trying to increase your Bitcoins without getting caught up in whales and big corporations.
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