MicroStrategy’s Bitcoin holdings surpassed a milestone after the company bought the dip with a $243 million investment.
MicroStrategy’s holdings now exceed 450,000 Bitcoin (BTC), acquired for a total of $28.2 billion at an average price of $62,691.
MicroStrategy Bitcoin holdings, court filing, Jan. 13. Source: US Securities and Exchange Commission
The milestone came after the company acquired $243 million worth of BTC at an average price of $95,972, MicroStrategy founder and chairman Michael Saylor announced in a Jan. 13 post on X.
Source: Michael Saylor
MicroStrategy made the purchase during a nearly weeklong correction, during which Bitcoin’s price traded below the $100,000 psychological mark starting Jan. 7, according to Cointelegraph Markets Pro data.
BTC/USD, 1-month chart. Source: Cointelegraph
Crypto hedge funds have also been buying the dip, which saw Bitcoin exchange reserves sink to a near seven-year low on Jan. 13.
Diminishing Bitcoin supply on exchanges may signal an incoming price rally driven by a “supply shock,” which occurs when strong buyer demand meets a decreasing amount of BTC, leading to more price appreciation.
Related: UK judge dismisses $770M Bitcoin landfill hard drive case
Bitcoin vulnerable to macroeconomic drivers
Bitcoin surpassed the $100,000 record high on Dec. 6, 2024, a month after Donald Trump’s victory during the 2024 US presidential election.
However, markets have already priced in the positive news related to the upcoming Trump administration, which leaves it “vulnerable to macro drivers,” according to Bybit Research:
“Bitcoin and crypto have reverted to being reactive to macroeconomic news at the end of 2024 and beginning of 2025, particularly the slower pace of rate cuts anticipated by the Fed in the new year.”
Bitcoin’s dip below $92,000 was mainly attributed to the stronger-than-expected Job Openings and Labor Turnover Survey (JOLTS) released on Jan. 9, which “reiterated the strength of the US labor market,” added the Bybit researchers.
Related: KULR Technology predicts $200K Bitcoin price after buying $97K dip
Other analysts also see macroeconomic factors as the main reason behind Bitcoin’s decline.
Notably, Bitcoin’s correction was mainly triggered by growing concerns over the US Federal Reserve’s tightening monetary policy for 2025, according to Ryan Lee, chief analyst at Bitget Research.
The analyst told Cointelegraph:
“Bitcoin’s dip stems primarily from strong US economic data pointing toward potential interest rate hikes. This development makes cryptocurrencies less attractive as investments…”
Target interest rate probabilities. July 30. Source: CME Group
Signs of economic resilience have delayed expectations of a potential rate cut by the Federal Reserve, with markets now expecting the first lending rate cut to occur on July 30, according to the latest estimates of the CME Group’s FedWatch tool.
Despite the concerns around interest rates, other firms are also buying the Bitcoin dip. On Jan. 13, Nasdaq-traded Semler Scientific also announced purchasing 237 BTC worth $23.3 million at an average price of $98,267
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