MicroStrategy buys Bitcoin after Elon Musk's tweets wreak havoc
Bitcoin's Huge Bull and Public Trading Business Intelligence Firm MicroStrategy They have gained notoriety in purchases every time the crypto asset plunged. The latest buy comes just hours after Bitcoin crashed near $ 45,000, prompting a market-wide crash and cascading sell-offs.
Michael Saylor, President and CEO of MicroStrategy Company, revealed the purchase of an additional 271 Bitcoins for $ 15 million in cash on May 13. According to the official announcement of the executive, the purchase was made at an average price of approximately $ 55,387 per Bitcoin.
As of May 13, MicroStrategy owns nearly 91,850 Bitcoin that were acquired for nearly $ 2.241 billion at an average price of 24,403 per BTC.
The author of The Bitcoin Standard, Saifedean Ammous, who had previously questioned the sustainability of rockets and batteries at Musk's SpaceX after the latter's suspension, did another canny dig in his latest tweet saying:
"Michael Saylor's MicroStrategy Doesn't Need To Trade Carbon Scam Credits And Subsidies To Be Profitable".
The cryptocurrency market has been going down after the crash. But what led to the massive downfall? Crypto-Economy had previously reported that the American automaker, Tesla's big reveal that it will no longer accept payments in cryptocurrency, citing environmental concerns.
Tesla's suspension of buying vehicles using Bitcoin was announced by its founder Elon Musk on Twitter, which was enough to wreak havoc on market players.
I had tweeted,
“Tesla will not sell Bitcoin and we intend to use it for transactions as soon as mining moves to more sustainable energy. We are also looking for other cryptocurrencies that use <1% of Bitcoin's energy / transaction. '
Bitcoin (BTC) Swings Above $ 50K After New Momentum
Historically, cases like this have proven to be good buying opportunities, as they indicate panic in the market. Thus, Bitcoin rose to $ 50,794 at the time of writing after attempting to reduce the ramifications of the bearish price movement amid strong volatility in the currency market.
The rally could be the result of not just institutional investors buying the dip, but also retailers rushing to stack some cheaper priced tokens. If this continues, the buying sentiment could boost the price of the crypto asset in the coming days.
MicroStrategy's latest Bitcoin purchase also comes amid rising inflation in the US. The country's consumer price index (CPI) reportedly increased more than 4.2% year-on-year in April. This was recorded to be the fastest rise in inflation in more than a decade. Hence, higher inflation could potentially result in higher rates which, in turn, could extend the bull run for Bitcoin.
If you are interested in this project and want to be informed of everything that happens, visit our News section about Bitcoin (BTC)