Companies are buying Bitcoin significantly: Is the new all-time high for BTC coming now?
2 min readWithin the cryptocurrency ecosystem, participants are currently experiencing an exciting phase: With MicroStrategy’s recent purchase, which included an additional 3,000 Bitcoin, Bitcoin’s market value reached a 29-month high of up to $64K – a number we last saw in December 2021 have seen. This increase came despite the S&P 500 falling by a few percentage points in recent days. These developments make it clear that cryptocurrencies are beginning to break away from traditional stock markets. In the past, this has often heralded the beginning of a subsequent Bitcoin bull market.
Crypto in the Bull Market Upswing: The Decoupling from Traditional Markets
This recent surge represents a turning point that demonstrates the resilience and independence of cryptocurrencies compared to traditional markets. Historically, low correlation between crypto markets and stock markets led to the biggest bull runs for BTC and altcoins. Could this be the beginning of a new era where crypto emerges as an asset class in its own right?
📈 With assistance from #Microstrategy's latest purchase of an additional 3,000 #Bitcoin, the market value of #crypto's top cap asset has jumped as high as $54.9K today, equaling its highest price since December 3, 2021. Notably, this happened on a day that the #SP500 declined… pic.twitter.com/oMHC2m8jBk
— Santiment (@santimentfeed) February 26, 2024
A turning point with further price increases for Bitcoin?
As one of the influential crypto analysts, Ali believes that we are in the “hope phase” of the market psychology cycle. Any correction should be seen as an opportunity to invest in Bitcoin’s dips. This perspective offers an optimistic view of current market movements. The graphic generally shows market sentiment and the mood of investors in correlation to the prices. In view of this, if we are within the hope phase, we could still be at the very beginning of the future greatly increased BTC price.
In this context of strong market rises, institutions that are contrary to BTC often speak out. Michaël van de Poppe speaks out about the statements made by the European Central Bank (ECB) regarding Bitcoin. In particular, Van de Poppe notes that people are increasingly likely to turn to BTC given inflation and the euro’s declining purchasing power. This movement is increasingly driven by the need for a safer and more stable investment option.
The #crypto market appears to have entered the “hope” phase in the psychology of a market cycle! Take any correction as an opportunity to buy the $BTC dip. pic.twitter.com/bLAcgYWfe8
— Ali (@ali_charts) February 26, 2024
