What happened?
On November 10th, the price of Bitcoin broke through the $81,000 mark, and the Crypto Fear and Greed Index rose to 78, entering the “extreme greed” zone. This is the highest point since April this year, indicating that market sentiment remains optimistic.
As the price of Bitcoin continues to rise, there has been a significant increase in Google searches for “Bitcoin”. Many companies or countries that have long-term investments in Bitcoin, such as MicroStrategy, Bhutan, and El Salvador, have also seen considerable profits recently.
With the Bitcoin halving event scheduled for 2024 and the election of Donald Trump as the US president, there is a strong expectation in the market for a relaxation of cryptocurrency policies in the future, leading to a significant increase in sentiment indicators. Analysts predict that Bitcoin may have even greater room for growth before Trump’s inauguration on January 20, 2025.
MicroStrategy’s Bitcoin holdings surpass $20.5 billion, with strategic investments yielding over 104%.
As the price of Bitcoin soared to $81,617, MicroStrategy, which actively purchases Bitcoin, now holds over $20.5 billion worth of Bitcoin, with investment returns exceeding 104%, demonstrating strong strategic patience and foresight.
So far, MicroStrategy remains the largest Bitcoin corporate holder in the world, followed by Bitcoin miners Marathon Digital and Riot Platforms, who hold $2.1 billion and $840 million worth of Bitcoin, respectively.
According to data platform “Saylor Tracker,” MicroStrategy has purchased a total of 252,200 Bitcoins in 42 transactions at an average cost of $39,292. The company plans to raise an additional $4.2 billion in the next three years to continue expanding its investment and acquisition plans.
MicroStrategy’s founder, Michael Saylor, has been actively promoting the long-term strategy of “using Bitcoin as a corporate asset reserve.” His continuous buying actions have not only driven the market value of Bitcoin but also influenced the investment decisions of other major institutions.
Market experts point out that as Bitcoin is further integrated into institutional portfolios, the supply and demand balance in the market may continue to be pushed higher, providing long-term support for the future performance of Bitcoin.
The weekend’s surge is particularly positive for Bitcoin ETFs and Bitcoin-related stocks.
For example, iShares Bitcoin Trust ETF (IBIT) rose 11% to $43.69 last week, reaching a new all-time high, and the stock price of Coinbase exchange (COIN) also rose 48% to $270.74.
Other Bitcoin miners such as Terawulf Inc (WULF) and CoinShares Valkyrie Bitcoin Miners ETF (WGMI) have also set new stock price highs this year thanks to the popularity of Bitcoin.
Bitcoin frenzy sweeps the globe, Bhutan and El Salvador benefit from holding the currency
As Bitcoin rises, it also leads to increased value of other countries’ cryptocurrency assets.
Since 2021, El Salvador has announced its Bitcoin investment strategy, purchasing 1 Bitcoin every day. They have accumulated 5,930 Bitcoins with a market value exceeding $482 million, and their investment has grown by 80%.
El Salvador not only benefits from the appreciation of Bitcoin reserves but also increases its revenue through the “Passport Program,” which offers residency visas and citizenship to those willing to buy $1 million worth of Bitcoin, as well as the “Volcano Mining Project.”
Although initially criticized when entering the bull market of the cryptocurrency market and experiencing continuous price declines, El Salvador’s strategy seems to show stable growth benefits after significant rebounds in the price of Bitcoin, gradually changing outsiders’ views on its investment policy.
In addition, according to data from blockchain analysis company Arkham Intelligence, Bhutan’s Bitcoin holdings have now exceeded $1 billion, accounting for 32% of the country’s GDP. Bhutan is one of the few countries in the world that has included Bitcoin as a national reserve asset.
Bhutan is also building large-scale Bitcoin mining facilities and hopes to consider Bitcoin as part of its strategic reserves to enhance its economic stability.
Reference:
cointelegraph, cointelegraph
