Bitcoin was volatile in the past several days. It still continues its stellar rally and sets new records. Meanwhile, the news broke that the major bitcoin corporate backer, MicroStrategy, is planning to invest $600 million in bitcoin. Thus, the crypto community should expect the price of BTC to reach another all-time high in the short term.
It would be more correct to say that the company is going to reinvest, as it has gained $2.3 billion from the rise in the value of bitcoin. It announced plans to issue $600 million in convertible notes to fund its bitcoin purchase. Apart from that, MicroStrategy will have an option for repurchasing or redeeming the notes in February 2024.
Bitcoin broke the $50K barrier after the announcement, setting another record. Notably, it was a short-term rally. Then, the price pulled back to $47.7K, consolidated, and resumed its upward movement. Thus, on February 17, bitcoin skyrocketed, settling above $51K despite attempts of the market to push the price down.
The correction has made the market even more unpredictable. Nevertheless, we can clearly see the bullish trend in bitcoin. Large companies continue to build up their bitcoin reserves. This fact has a positive effect on the price of the digital asset and consequently on the entire market. A strong investment flow, as well as the development of software for cryptocurrency transactions, will make the market stable enough so that it can prevent major digital coins from falling below certain positions.
At the same time, bitcoin seems to be in a vulnerable situation. The thing is that the coin is the most independent asset in the market. In addition, it helps other digital cash to rise. Therefore, sharp jumps in the value of bitcoin can have an adverse impact on retail traders, who can incur tremendous losses in a matter of hours. On top of that, BTC's sharp fluctuations can cause market turmoil, which is closely related to the main cryptocurrency at the moment. On February 17, bitcoin is showing steady growth, which positively affects the overall market dynamics. There are no prerequisites for a sharp drop in its price now. However, it does not mean that the price cannot suddenly drop. This is the main problem of the first cryptocurrency.
