Major buyers have returned to Bitcoin [BTC] market. However, IIf large investors continue to buy and available supply declines, is a supply shock inevitable?
Strategy contributes to the Bitcoin stack
The world’s largest Bitcoin treasury added 1,587 BTC last week for about $100 million. The average purchase price for this round was $63,024 per BTC.
Thanks to this transaction, Strategy’s total Bitcoin holdings now stand at 846,842 BTC. The company has issued approximately $64.07 billion in Bitcoin to date, at an average purchase price of $75,656 per BTC.
It has also increased its USD reserves by another $100 million, bringing it to $1.1 billion.
And it’s not just them. Also in the news is Vivek Ramaswamy’s venture into the company bought 73 Bitcoin worth $4.7 million. The total holdings now stand at 19,105 BTC.
Whale Sales Drop, Is BTC’s Recovery Next?
Older Bitcoin between June 1 and 4 moved The stock markets and selling pressure pushed BTC down to $63.8K. However, the tone changed near the $61.4K level.
With panic selling increasing, major wallets started absorbing supply and exchange net flows turned negative. On June 14, the whale supply (which had been declining for almost two weeks) began to rise again.
Large hands may view the $60K-$61.5K level as a critical buying zone.
In recent days, developments between the US and Iran and SpaceX’s IPO have also helped shake things up.
Can the Bank of Japan test the supply shock theory?
While the outlook has improved recently, so has the macro side still needs attention. Tomorrow’s Bank of Japan interest rate decision could cause the next big chaos!
A BOJ rate hike could put pressure on the carry trade in the yen, a strategy that has supported risky assets for years. When this trading comes to a halt, investors often sell stocks, cryptocurrencies and other risky assets. Bitcoin could face selling pressure as global markets turn away from risk, especially with the Fed’s decision coming right after on June 17.
As it stands now, things look mixed. There is buying behavior, but external factors can still delay the outbreak. If Bitcoin holds up under this pressure, the supply shock will become much stronger.
Final summary
- Numerous BTC buying events have revived the supply shock story.
- We now face an important macro test, with decisions from the BoJ and Fed expected soon.