The price of Bitcoin rose during today’s trading after Strategy announced a new purchase of the digital currency worth nearly $1.3 billion. However, the upward momentum remained limited due to continued weak demand, especially from individual investors in the U.S. Bitcoin managed to briefly surpass the $95,000 level before trimming its gains as market pressures persisted.
This rise followed the disclosure by Strategy, led by Michael Saylor, that it had purchased more than 13,000 Bitcoin units at an average price of around $91,500 per coin, marking the company’s largest Bitcoin investment since July last year. With this purchase, the company’s total Bitcoin holdings rose to about 687,000 coins, reinforcing its position as the largest publicly listed company holding the digital currency.
The deal helped ease concerns about the slowdown in Strategy’s Bitcoin purchases after the company had reduced its buying activity in recent weeks. However, pressure remains on the company’s stock, as its value has significantly decreased since the beginning of the year, with continued worries about the strategy of heavy reliance on Bitcoin and the impact of price volatility on its financial commitments.
Meanwhile, data showed continued weak demand for Bitcoin in the U.S. market, as the coin is trading on Coinbase at levels lower than the global price average, which is considered a sign of a lack of enthusiasm from individual investors. Market data indicates that this price discount has been ongoing since mid-December, coinciding with a decline in Bitcoin’s average price during that period.
On the other hand, most alternative cryptocurrencies performed better than Bitcoin, supported by U.S. inflation data that largely met expectations, though it did not have a significant impact on monetary policy outlooks. Ethereum saw a notable rise, and coins like XRP, Solana, BNB, and Cardano gained varying degrees, while some speculative coins also saw notable increases.
Overall, the market’s performance reflects a state of divergence, where cryptocurrencies benefit from short-term supportive factors, yet continue to face challenges related to weak demand and ongoing caution among investors.
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