Will MicroStrategy Buy More Bitcoin?

Bitcoin’s recent volatility has left holders uneasy, with the price hovering near $90,000 and long positions liquidated across exchanges. However, Michael Saylor’s MicroStrategy appears unfazed, sparking speculation of a potential new Bitcoin purchase amid the bearish market.

On January 12, Saylor shared his 10th consecutive weekly Bitcoin tracker on X. Historically, these posts have preceded MicroStrategy’s BTC acquisitions, leading to widespread speculation about whether the business intelligence firm will “buy the dip.”

MicroStrategy’s BTC Holdings and Bold Strategy

According to SaylorTracker, MicroStrategy currently holds 447,470 BTC, valued at over $41 billion at current rates. On January 6, the firm purchased 1,070 BTC following a similar tracker post. This timing has fueled discussions about another imminent acquisition, particularly as Bitcoin’s price remains under pressure.

MicroStrategy’s approach has been both praised as visionary and criticized as risky. While supporters view the company’s strategy as forward-thinking, detractors cite concerns over mounting debt and Bitcoin’s inherent volatility.

The firm’s stock, MSTR, has mirrored Bitcoin’s price movements. After reaching an all-time high of $475 in Q4 2024, it has since declined by over 35%, reflecting Bitcoin’s recent price dips. Despite this, MicroStrategy has doubled down with its ambitious “21/21” plan, aiming to raise $42 billion through shares and bonds for additional Bitcoin purchases.

Bitcoin’s Price Action: A Turning Point for Altcoins?

The broader market focus remains on Bitcoin’s psychological $90,000 support level. A breach could lead to further losses, while a recovery above $96,000 or $100,000 could signal the start of a buy-trend continuation pattern.

If bulls regain control, Bitcoin could potentially rally past $108,000, creating favorable conditions for altcoin growth. Major altcoins like Ethereum, Solana, Dogecoin, and Tron—currently down an average of 15% over the past week—could see a significant rebound.

Market analysts at 99Bitcoin note that any recovery above key levels could ignite a mega altcoin rally, offering relief to the broader crypto market.

While the market awaits MicroStrategy’s next move, Bitcoin’s price action will be pivotal in determining its trajectory and the potential for an altcoin season. Whether MicroStrategy’s anticipated purchase sparks bullish momentum or broader market forces push prices lower, the coming weeks will be critical for crypto investors.