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Bitcoin is cautiously showing signs of strength again. The price has been holding above a key level this week, supported by a major purchase worth nearly a billion dollars a few days ago. Optimism is returning, and an expert predicts that the top is not yet in sight.
Bitcoin Reclaims $90,000 Level #
The price of bitcoin is holding onto an important price level. Over the weekend, the price remained below the $90,000 mark, but since Sunday evening, it has managed to reclaim this level. At the time of writing, bitcoin is valued at $90,506.
Bitcoin has now been rising cautiously for a week. In the past seven days alone, the price has increased by about 4 percent. Compared to a month ago, the current price is still more than 11 percent lower.
Optimism Returns to the Bitcoin Market #
In recent months, bitcoin has faced significant selling pressure. According to Matthew Sigel, Head of Digital Assets Research at VanEck, asset manager Bernstein attributes this selling pressure primarily to panicked retail investors.
Bernstein also states that demand for bitcoin from traditional investors is currently strong enough to absorb these sales, Sigel shares. The reason, according to Bernstein, is that bitcoin has lost relatively little capital on the exchange, despite the sharp price decline.
According to Bernstein, a new era is now dawning for bitcoin. Typically, a bear market—a period of price declines—would now begin. However, this market pattern has been broken, and the bull market, a period of price increases, will continue, according to the expert.
Largest Corporate Holder Makes Major Purchase #
While the price is showing the first signs of a potential trend reversal this week, the company Strategy (formerly MicroStrategy) has made its largest bitcoin purchase in months. Strategy is the world’s largest corporate bitcoin holder, and the recent purchase has reaffirmed this status.
Strategy bought a whopping 10,624 bitcoin for nearly a billion dollars. With this, the company now owns 660,624 bitcoin. It is the largest purchase in months, suggesting the company has confidence in the price.