Bitcoin dropped around 3% in New York on Thursday, trading near $95,420. The dip continued even though MicroStrategy Inc. revealed plans to issue more shares in order to buy more tokens.
According to a recent Bloomberg report, Bitcoin dropped to $95,420 at 7:12 am on Thursday in New York, losing around 3%.
Meanwhile, a wider range of cryptocurrencies, including Ether, Solana, and the meme coin Dogecoin, also lost around 3%.
However, Trading Director Sean McNulty at Arbelos Markets said, “The market is being forward-looking about MicroStrategy’s Bitcoin buys, and that’s been the single biggest reason for the market to go up. Watching MicroStrategy news is becoming a big part of my day,” he said.
December 23rd filing with the U.S. Securities and Exchange Commission revealed that MicroStrategy seeks to increase the number of authorized shares of Class A common stock and preferred stock.
Once the company gets approval, it will be granted the freedom to issue more shares, allowing it to raise funds and use them to strengthen its already very large Bitcoin holdings.
MicroStrategy revealed this week that it acquired another $561 million worth of Bitcoin, paying an average price near last week’s peak. This move marked its seventh consecutive week of buying the digital token in bulk.
Bitcoin has jumped 135% so far this year, completely outperforming returns from conventional instruments like global equities and gold.
Market to become turbulent soon due to large expiries of open interest in Bitcoin
A record $43 billion of open interest, with $13.95 billion in Bitcoin options and $3.77 billion in Ether options, will expire Friday on Deribit, rattling many traders.
Some traders warned that the market might become turbulent soon due to large expiries of open interest in Bitcoin and Ether derivatives tomorrow.
“Market makers could unwind their hedges and short Bitcoin strikes, which might make it a choppy market on Friday,” McNulty observed.
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