Key Takeaways
- MicroStrategy and Metaplanet lead the accumulation of Bitcoin treasuries as institutional interest in the cryptocurrency continues to increase.
- Bitcoin’s price trades above $115,000 following continuous interest in amassing a stockpile of Bitcoin as a store of value.
- Crypto experts, despite the short-term bullish sentiment of Bitcoin, worry about the long-term market impact of institutions.
Corporate institutions have begun an aggressive accumulation of Bitcoin over the last few months, leading to the price of Bitcoin hitting new highs of over 123,000 as more institutions leverage Bitcoin’s potential as a hedge against inflation continue to surge.
Two prominent adopters of Bitcoin, MicroStrategy and Metaplanet, are continuing their adoption of the Bitcoin treasury without pause. MicroStrategy dominates the market, following the consistent accumulation of Bitcoin, which has resulted in billions of dollars in gains since it began buying Bitcoin.
Let us investigate the amount of Bitcoin treasuries owned by these institutions and how they could impact the overall market trend in the coming months.
MicroStrategy Bitcoin Holding – Source Strategy
Since MicroStrategy CEO Michael Saylor adopted Bitcoin, he has pushed the limit to amass more Bitcoin for his company, becoming a leading voice in the Bitcoin community for years. MicroStrategy has employed dollar-cost averaging to buy Bitcoin, currently holding over 607,770 Bitcoin, according to live data on the MicroStrategy platform.
This stance in acquiring Bitcoin has also led Metaplanet, a Japanese company, to use a similar purchasing technique, although not entirely similar. The corporate company has developed its strategy to buy large volumes of Bitcoin, similar to Microstrategy.
Metaplanet Bitcoin Holdings – Source Metaplanet
According to a live Bitcoin purchase history on the Metaplanet website, the company has purchased over $16,352 at an acquisition cost of approximately $1.64 billion, with an average cost of $100,191 per Bitcoin.
While such aggressive market buys for Bitcoin have gained much praise from traders and investors as a result of the market rallying to new highs and more companies opening up Bitcoin treasuries, many crypto traders and experts believe that the long-term potential would impact the market negatively.
Market Impact on Bitcoin by Corporate Companies
Bitcoin in the last decades have struggled for adoption by financial institutions into the mainstream, but since the emergence of Microstrategy who have pioneered Bitcoin treasuries and the push for Bitcoin spot ETF (Exchange-traded funds) by the likes of VanEck, Bitwise, BlackRock and other things are looking good for Bitcoin with many corporate companies willing to explore the potential of Bitcoin.
Let us discuss some of the market implications of corporate companies like MicroStrategy and Metaplanet accumulating Bitcoin for the long run.
1. Reduced Bitcoin Supply and Bullish Rally – MicroStrategy’s CEO, Michael Saylor, believes the price of Bitcoin is an elite asset with the potential of $1 million per Bitcoin. As the company continues to acquire more Bitcoin at every opportunity, this acquisition has led to the company owning over 2.8% of the Bitcoin supply. The company is not planning to slow down.
Metaplanet, on the other hand, has continued to make a similar stockpile of Bitcoin purchases, creating a supply shock in the market. However, this institutional purchase of Bitcoin has led to the price of Bitcoin rallying in recent times to new all-time highs of $123,000, with speculation suggesting the price could reach a high of $250,000 by the end of 2025.
2. Increased Volatility – As companies lock up larger amounts of Bitcoin, many crypto experts have shared worrying concerns of liquidity in the market drying up despite seeing market surge to new highs, thus making short-term trading potential tough and impacting the overall volume of the market. While bearish market sentiment may not be evident, experts continue to speculate that the market could enter a dark phase if these Bitcoin treasuries fail.
3. Boosting Institutional Confidence and Regulations – The commitment of MicroStrategy and Metaplanet has opened opportunities for many corporate companies to explore Bitcoin, with the likes of Michael Saylor constantly endorsing the crypto asset as a legitimate institutional asset to be held for the long run.
This has also highlighted the need for a proper regulatory policy in different countries towards transacting with Bitcoin, as the U.S. continues to explore ways to become a leading force in promoting Bitcoin.
The short-term market impact for these institutions remains bullish for the Bitcoin price, as evident in its bullish price rally over the last few weeks.
Bitcoin Price Analysis
BTC 1W Bullish Breakout – Source TradingView
The Bitcoin price on the weekly timeframe has remained bullish following a strong breakout, as its market price could continue to rise strongly to the upside, potentially reaching $130,000 to $150,000 in the short term.
A long-term price prediction for Bitcoin suggests a potential high of $200,000 and beyond, driven by strong institutional interest in the market.
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