Treasury Companies Bought Bitcoin as It Dropped to $115,000
Institutional investors remain surprisingly optimistic about Bitcoin, deploying capital to buy every time the cryptocurrency’s price declines.
Treasury-focused firms such as Strategy and Metaplanet actively accumulated Bitcoin on Monday, when its price dropped by more than 2%. Strategy’s chairman Michael Saylor announced the purchase of 430 BTC worth over $51 million, while Metaplanet’s president Simon Gerovich said his company acquired 775 BTC for about $93 million.
Last week, Bitcoin (BTC) surged significantly, supported by lower-than-expected consumer inflation. It nearly reached its all-time high, but the second inflation report on wholesale prices triggered a pullback.
While nervous traders sold off, institutional investors took the opportunity to buy the dip.
“I hear the disappointment about the recent pullback. That’s natural,” wrote Metaplanet CEO Simon Gerovich on social media. “But what gives us confidence is the foundation we are building. Let’s discuss the milestones we’ve achieved, because over time the fundamentals will prevail.”
On the evening of August 18, Bitcoin was priced at $116,028, down 1.69% since Sunday and 3.26% over the past week, according to Coinmarketcap. Over the previous 24 hours, the cryptocurrency traded between $114,723 and $118,073 (TradingView data).
Trading volume jumped 62.22% to $69.23 billion, as expected after the weekend. Meanwhile, compared with the previous day, market capitalization fell 1.64% to $2.31 trillion. Bitcoin’s dominance rose 0.70% to 59.82%, as the leading cryptocurrency continues to outperform the broader market.
See also: "Cardano futures volume hits 5-month high at $6.96 billion"
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