Since it returned to $50,000, Bitcoin has restored the hope that investors had it in. The cryptocurrency suffered a huge decline after reaching an all-time high of $65,000; it fell as low as $29,000 and struggled between $30,000 and $40,000 before eventually hitting the $50,000 milestone just recently.
At above $50,000 and considering some factors, Bitcoin is expected to continue to rally and hit a new all-time high in the closest future. The dip that happened in the past month made a huge impact on the cryptoverse. It caused a lot of investors to panic, causing many to panic-withdraw all or most of their investments. Bitcoin also suffered some setbacks which affected its value; Tesla stopped accepting the flagship cryptocurrency as a medium of payment for their electric vehicles.
The dip was one of the toughest periods for investors who had assets in Bitcoin (and cryptocurrency). Bitcoin’s price kept fluctuating and with no involvement or influence from Elon Musk, Bitcoin was really on its own.
It is pertinent to know that the dip was also the best of times for another set of investors who saw this as an opportunity to invest or make subsequent investments to what they already had. According to analysis, the dip might be the largest accumulation of Bitcoin in a decade. Many companies also participated in the dip. Microstrategy, for instance, participated in the dip. According to information on the company’s website, as of June 21, 2021, MicroStrategy holds an aggregate of approximately 105,085 Bitcoins, which were acquired at an aggregate purchase price of approximately $2.741 billion and an average purchase price of approximately $26,080 per Bitcoin, inclusive of fees and expenses, and MacroStrategy LLC – a subsidiary of MicroStrategy, holds approximately 92,079 of the Bitcoins with a price of approximately $26,080 per Bitcoin, inclusive of fees and expenses.
In early June, Microstrategy announced its intention to invest the sum of $400 million in Bitcoin. The company said it was borrowing $400 million to purchase more of the world’s most famous cryptocurrency and was also writing down the value of its existing holdings. Towards the end of the same month, the company which seemed to be on a quest of holding as much Bitcoin as it could lay its hands on acquired $490 million worth of Bitcoin.
As usual, investors do not expect the recent dip to be the last. In as much as they expect a dip, they do not expect it to be as severe as the dip that left the cryptoverse in a conundrum.
As of the time of drafting this write-up, Bitcoin was trading a little above $51,700.
Bitcoin advancement actions are still ongoing. Companies are still embracing the cryptocurrency, countries are adopting the cryptocurrency while others have banned its use and the use of other cryptocurrencies in their countries.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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