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Bitcoin ATH Stops Short of $110k Mark as Companies Adopt MSTR Play
- Bitcoin reached a new all-time high of $108,268, driven by bullish announcements and market sentiment.
- Shiliang Tang highlighted increased institutional interest as MicroStrategy joined the Nasdaq 100 and continued Bitcoin purchases.
- Crypto analyst RektCapital warns of historical price pullbacks, urging preparedness for upcoming corrections.
- At the same time, buying continues by some of the largest Bitcoin whales, such as MicroStrategy, Metaplanet and the US Spot Bitcoin ETFs.
In true bull market style, Bitcoin is making all-time high (ATH) after all-time high. In the wee hours of Wednesday, the OG crypto reached an unprecedented US$108,268 (AU$170,828). However, at the time of writing the price per BTC has dropped again, currently trading at US$106,211 (AU$167,610).
BTC’s Price Surge: More Upside Potential or a Deeper Correction Looming?
Arbelos Markets president, Shiliang Tang, said the price rally comes on the back of several bullish announcements around Donald Trump and MicroStrategy joining the Nasdaq 100. Tang said MSTR’s ongoing BTC buying means “capital rotation has largely benefited BTC dominance with BTC reaching ATHs and further pulling in more capital from the markets”.
However, Crypto Twitter analyst RektCapital reminds traders and investors alike that historically, drawdowns happened around 6 to 8 weeks after BTC entered price discovery, following the breach of previous ATHs.
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The trader expects that a deeper correction could potentially wipe out a lot of the gains made over the past few weeks.
In 2017, Bitcoin retraced -34% in Week 8 of Price Discovery. In 2021, Bitcoin pulled back -16% in Week 6. Will history repeat?
RektCapital The trader stated that what’s important is not if, but when a correction occurs, as every BTC cycle has experienced them. RektCapital urged it’s important to be prepared when a correction comes.
Because when it does occur, it will wipe out multiple weeks of upside in the process. Price Discovery Corrections are a normal part of the BTC cycle and every cycle has experienced them.
RektCapital MSTR, Metaplanet and ETFs Continue Buying Bitcoin
As reported, Michael Saylor continues with his playbook, adding more BTC to MicroStrategy’s (MSTR) coffers, no matter the price of Bitcoin.
And it seems to catch on. Metaplanet, often called the Japanese MicroStrategy, has announced plans for another Bitcoin purchase amounting to ¥4.5 billion (AU$47.3 million).
Metaplanet Inc. resolved at its Board of Directors meeting on December 17, 2024, to issue its 4th Series of Ordinary Bonds. […] The funds raised through this issuance will be allocated to the purchase of Bitcoin.
Metaplanet Inc. Metaplanet’s share price has surged over 100% in the past month as it continues to follow Saylor’s Bitcoin-buying strategy.
The US Spot exchange-traded funds (ETFs) meanwhile started the week strong. The most recent trading data shows US$636.9 million (AU$1 billion) in net inflows for Monday 18 December.
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BlackRock’s IBIT took the lion’s share, with a whopping US$418 million (AU$659.7 million) in Bitcoin, now holding 2.586% of the total BTC supply, compared to the 5.4% of all the US ETFs combined.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
