Bitcoin rejected from $30K as markets digest Microstrategy’s Q2 bet

Microstrategy’s bitcoin buy in Q2 marked the largest addition to its balance sheet in two years, as bitcoin holds July’s range lows


3Dsculptor/Shutterstock, modified by Blockworks


Bitcoin (BTC) edged slightly lower Tuesday as markets began digesting results from MicroStrategy’s (MSTR) second quarterly earnings.

The world’s largest digital asset is down about 2% on Wednesday after briefly tapping $30,000 for the first time in more than a week. Late Tuesday witnessed a small jump in its value of around 1.6%, exchange data shows, but the move was swiftly reverted.

Increased volatility comes as Michael Saylor’s company announced it had added a further 12,333 BTC to its balance sheet in Q2 bumping its total holdings to above $4.4 billion.

“We did so against the promising backdrop of increasing institutional interest, progress on accounting transparency and ongoing regulatory clarity,” the company’s CFO, Andrew Kang, said in a statement on Tuesday.

Its bitcoin buy for the period marked the largest single quarter increase in two years, Kang said.

Year-to-date, MSTR’s stock has witnessed a 200% rise and is nearing its 52-week high of $478, having finished up at $434 on Tuesday’s closing bell, data shows. Wall Street analysts are forecasting a 16% bump in its value over the next 12 months, according to TipRanks.

Bitcoin volatility

Despite clocking a 4% decline in July, BTC ended $2,000 higher than May’s closing price of $27,200 offering continuation to the higher high, higher low market structure that has held since the year began.

FalconX’s trading desk for bitcoin’s trading volume posted 2.3 times that of ether’s (ETH), the highest ratio in the last nine weeks, the crypto prime brokerage said in a recent research note.

Though liquidity and volatility remain muted.

The annualized realized volatility, calculated from daily returns over 30-day periods, was just under 25% for BTC and 32% for ETH. These rates are nearly the lowest they’ve been since 2017, FalconX noted.

The summer season across the Northern Hemisphere may be contributing to the sluggish movement of crypto prices, Sergei Gorev, risk manager at YouHodler told Blockworks.

“The market may continue to decline slightly and we should expect the beginning of cautious purchases from traders in the range of about $27,900 to $28,400 — an important range where the spring price highs fell into.”

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