Although Michael Saylor is buying the Bitcoin market like a vacuum cleaner, little is changing in the overall trend. Why is that? Market Update.
A mixed picture is emerging in the crypto market. While the bandwagon Bitcoin is trading 1.1 percent above the previous day’s level at $45,341 (USD), altcoins such as Cardano (ADA) are faring somewhat worse: Down 2 percent, ADA is currently down.
Ethereum (ETH) also doesn’t quite know what to do with itself and is only up 0.5 percent for the day. Winner by points is – as so often in recent times – high-flyer Solana (SOL). Up 3.6 percent in 24 hours, SOL is trading at $166 at the time of writing.
Meanwhile, there’s no real clear direction in the overall market – if anything, it’s sideways.
- Binance Coin (BNB): 400 USD (+0.2 percent)
- Polkadot (DOT): 35 USD (+1.4 percent)
- Dogecoin (DOGE): 0.2365 (down 1.6 percent)
A look at the Fear and Greed Index also does not suggest a change in trend for now. Because currently the market participants are in a rather negative sentiment. However, a look at the charts gives reason for hope. There is a certain similarity to the price trend of September 2020 – shortly before BTC set off on its months-long rally.
Can Michael Saylor shift the winds?
But why isn’t Michael “Gigachad” Saylor’s aggressive buying these days enough to reverse the trend? Let’s take a look at the Marko ecosystem in the Bitcoin cosmos.
Every day, the Bitcoin network issues 900 BTC (6.25 BTC per block every ten minutes). That’s the equivalent of about $40.5 million in value – based on current price levels. Now, yesterday (Monday, September 13), the news reached us that Michael Saylor, or rather his company MicroStrategy, has once again purchased BTC with a total value of 242 million US dollars. As the company’s CEO announced via Twitter, MicroStrategy Treasury now calls an additional 5,050 BTC its own and has a total of 114,042 BTC.
While the time period in which the purchase took place is unknown. The average price of $48,099 puts the total athe suggests that this was quite small. After all, Bitcoin has only been trading in this channel since the beginning of September. In turn, 5,050 Bitcoin is the equivalent of more than five days’ worth of new coin issuance. In other words, MicroStrategy is sucking the market dry.
400 days ago MicroStrategy owned no bitcoin. They have effectively been buying 11.88 BTC per hour (1BTC every 5min) for the last 400 days.
At this point, you have to wonder why the bitcoin price is still trading in a sideways channel. Well, the answer is simple: there is not enough for a trend reversal. On the global Bitcoin markets, between 50 and 80 billion US dollars in value are traded daily – 242 million US dollars spread over several days is no more than a drop in the ocean. And of course, not only freshly mined BTC are traded, but mainly older UTXOs.
But at the end of the day, this is good news. Bitcoin is growing up. And so one man alone can no longer determine the fate of the world’s largest decentralized network.