Bybt.com reported that Grayscale Investment has bought an additional 17,100 BTC in the last one week. The information on the recent buying activity was brought to light through a tweet by the team at Unfolded. It had also provided a chart necessitating the visual representation of the past week’s accumulation activity.
The chart above also shows how Grayscale has been increasing its ownership over a period of time. The additional purchase of 17,100 Bitcoin can be seen in the chart as a significant spike in positions beginning around 20th September. The purchase of 17,100 Bitcoins roughly translates into $182 million considering Bitcoin’s current value. Grayscale’s Bitcoin trust now stands at a whopping $4.8 Billion.
This surely comes as a no surprise because many investment firms are adopting the strategy to increase their holdings of BTC. In September mid, Microstrategy CEO Michael Saylor announced on Twitter that it had purchased a total of 38,250 coins at an aggregated price of $425 million.
Microstrategy’s recently adopted Bitcoin as a treasury reserve asset is to hedge against flat inflation. In fact, many crypto enthusiasts believe that it is good to see BTCs being used as intended. The CEO said,
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders. This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
The examples of Microstrategy and Grayscale highlighted above show that investment firms have full confidence in Bitcoin providing an enhanced long-term valuation of their assets. We have also observed from Bitcoin’s behavior in the last few months how it bounces back in the crypto markets. BTC has traded above the $10k mark, considered to be the psychological price for almost 2 months as the third-quarter comes to an end. The only two hurdles presently are in the form of weekly close and monthly close. In the case of weekly close, it is nearly 8 hours away and close to the figure of $10,400. This can be extremely bullish for Bitcoin.
Talking about monthly close which is three days away, and if it closes roughly around the same levels, it will still be bullish for the market as it heads towards the fourth quarter.
It is also true that stock markets also have an influence over Bitcoin prices. Off late, the European nations are witnessing aggressive sell-off activities for the fear of the pandemic and it was then when Bitcoin also slumped. An unstable stock market will have a negative effect on the price of BTC without a doubt. It will be advisable to also watch out for volatile movements in the S&P index and Nasdaq especially when you plan to trade Bitcoin.