MicroStrategy, Bitcoin Whales, and Market Sentiment Drive Bitcoin Price Above $38,500
Bitcoin has finally broken above $38,500 once more after trading low for a couple of days. This surge in price may have come as a surprise to many, but there are key factors behind it that suggest it had already been in the making. Here are three reasons that drove the Bitcoin price above $38,500.
### MicroStrategy Makes A Large Bitcoin Bet
For around three years now, Michael Saylor’s MicroStrategy has been buying Bitcoin, with billions of dollars already spent so far. On Thursday, November 30, Saylor revealed that the company had doubled down on its Bitcoin bet once again, purchasing $593 million worth of Bitcoin, which came out to 16,130 BTC. This continued accumulation by the company has renewed interest from investors who are flocking back into the market at a rapid pace, making it one of the major factors driving the Bitcoin price.
### Whales Take On BTC
MicroStrategy is not the only large entity that has been bidding heavily on Bitcoin. According to reports, other whales have joined in on the action, buying up hundreds of millions worth of BTC in a very short time and driving the available market supply down. One particular whale purchased over 10,000 BTC worth around $460 million. Given MicroStrategy’s buying in addition to the whales buying up supply, it factored into driving the price above $38,000 once more.
### Greed Takes Over The Market
Investor sentiment has seen one of the most impressive improvements amidst the Bitcoin surge. Sentiment has jumped back toward extreme greed after the Fear & Greed Index flashed a score of 71. When the index is in extreme greed, it means investor faith in the market has reached its highest levels. However, reaching extreme greed has also coincided with a decline in the market.
Currently, the Bitcoin price has broken above $38,300 and continues to show bullish tendencies. If this trend continues, then the digital asset could be breaking above the $40,000 level before the month is over. This latest jump in the price of Bitcoin is driven by key players like MicroStrategy and Bitcoin whales, as well as a surge in investor sentiment towards extreme greed. As the market continues to evolve, it will be interesting to see how these factors continue to impact the price of Bitcoin in the coming days and weeks.
