The cryptocurrency market edged higher on Friday after MicroStrategy announced the purchase of 18,300 Bitcoin between August 6 and September 12.
Bitcoin (BTC) climbed by 2.2%, trading at $60,000, while Ethereum (ETH) gained 3%, reaching $2,420. Other notable movers included Polkadot (DOT), which rose 4%, and Solana (SOL), up 1%.
Details of MicroStrategy’s Latest Bitcoin Purchase
In a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy revealed it had spent $1.11 billion on its latest Bitcoin acquisition, paying an average of $60,408 per BTC. Since its first Bitcoin purchase in August 2020, the company, led by CEO Michael Saylor, has aggressively expanded its holdings. MicroStrategy now owns approximately 244,800 BTC, currently valued at $14 billion, with an average purchase price of $38,585.
Bitcoin’s Key Support Levels: A Make-or-Break Moment
According to research by ARK Invest, Bitcoin faces a critical moment, with $52,000 and $46,000 identified as key price levels. In their latest report, ARK highlights Bitcoin’s inability to maintain crucial support points, including its 200-day moving average and the short-term holder cost basis. ARK’s technical analysis warns that the $46,000 level could be Bitcoin’s “last chance” for support, making it a make-or-break scenario.
Bitcoin ETFs See Mixed Results Amid Market Uncertainty
Spot Bitcoin ETFs recorded a small net inflow of $39 million on Thursday, led by ARK Invest’s ARK Next Generation Internet ETF (ARKB), which attracted $18 million. In contrast, Grayscale Bitcoin Trust (GBTC) saw $6.5 million in outflows. Meanwhile, BlackRock’s iShares Bitcoin ETF (IBIT) has gone ten days without inflows, last receiving $224 million on August 26. Spot Ethereum ETFs saw $20 million in outflows, all from the Grayscale Ethereum Trust (ETHE).
Stock Market Posts Weekly Gains
While cryptocurrency markets experience some volatility, U.S. stocks have maintained upward momentum. The S&P 500 rose by 0.5%, the Dow Jones climbed 0.6%, and the Nasdaq Composite gained 0.4%. Positive economic data, including a 2.5% year-over-year rise in the Consumer Price Index (CPI) for August, contributed to the optimism. Additionally, the Producer Price Index (PPI) increased by 0.2%, in line with market expectations.
