Bitcoin’s annual gains surpassed $21.100 USD per BTC as the cryptocurrency’s price hit $50.350 USD per unit on February 16, boosting Bitcoin’s gains this year by 72%.
On the morning of this February 16th, Bitcoin (BTC) surprised us all again with a new all-time high, driven by the institutional and corporate interest and demand that exists for this cryptocurrency. Bitcoin, the leader of cryptocurrencies in the markets, reached a new historical maximum of $50.350 USD per unit, breaking the 50K level for the first time in the early hours of this Tuesday.
It may interest you: Bitcoin miners break record hourly earnings on the network
The Magic Formula of Bitcoin
Bitcoin analysts and expert traders, who celebrate the rise in the cryptocurrency's prices with the community, attribute this bull run to the low supply of BTC that exists in the markets, and to the great institutional demand that surrounds this cryptocurrency. The analyst of GlassNode known as checkmate, he indicated in a report that much of the BTC generated in mining is being accumulated as a “vote of confidence for Tesla” and as a “fair reason to maintain strong control over its treasury.”
CheckMate explains that Tesla’s recent investment, which pushed the BTC unit price on the markets up to 48K, is generating commensurate gains for long-term investors and miners. The analyst explains that the latter have relieved the selling pressure on their BTC holdings this month. Thus, the price increase has allowed miners to complete the sales necessary to cover their operating and running costs, while the rest of the mined BTC can be kept as a long-term investment.
The retention of bitcoins by long-term investors and miners, accompanied by an explosion in interest in Bitcoin, after Tesla revealed its multi-million dollar investment in this cryptocurrency, are the perfect ingredients to make the price of Bitcoin continue to revalue in the markets, in the long term.
MicroStrategy to buy more bitcoins
The business intelligence firm and the largest Bitcoin investor in 2020, is planning to offer, to qualified institutional investors, $600 million worth of convertible senior notes, maturing in 2027. According to the release The money raised in the private offering will be used to reinvest in Bitcoin, increasing MicroStrategy's holdings in this cryptocurrency.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”
MicroStrategy also said that the initial offering could be extended by up to an additional $90 million for qualified investors, so if it goes through, the company could raise a total of $690 million to invest in BTC. The company's new bitcoin investment plans may continue to drive the upward trend in the price of BTC.
MicroStrategy's Bitcoin holdings amount to 71.079 BTC, valued at more than $3.505 billion. At the time of this edition, Bitcoin is trading on the markets with a value of $49.320 USD, and has a market capitalization of over $918.827 billion.
Continue reading: “Bitcoin for companies”, a MicroStrategy event that can influence the price of Bitcoin
