Key Points
- Strategy, previously known as MicroStrategy, purchases 130 additional Bitcoin.
- The company’s latest acquisition comes ahead of the Federal Reserve’s Federal Open Market Committee (FOMC) meeting.
Strategy, the company previously known as MicroStrategy, has once again increased its Bitcoin holdings.
The company added 130 coins to its already considerable reserves, marking its smallest purchase since it began its Bitcoin buying spree.
Acquisition Details
The purchase was funded by the sale of 123,000 shares of its preferred stock (STRK).
The acquisition cost was approximately $10.7 million, which translates to an average purchase price of $82,981 per Bitcoin, according to a Monday morning filing.
The company now holds a total of 499,226 Bitcoin, purchased for $33.1 billion at an average cost of $66,360 per token.
Despite Bitcoin’s recent price drop, the company is still at a 20% profit.
Strategy’s latest acquisition comes just before the Federal Reserve’s highly anticipated Federal Open Market Committee (FOMC) meeting, the last one until May 2025.
FOMC Meeting and Bitcoin
The upcoming FOMC meeting, scheduled for March 19, is considered by analysts to be one of the most critical economic events of the year for financial markets.
According to Polymarket, the likelihood of the Federal Reserve ending Quantitative Tightening (QT) before May has surged to 100%, reflecting a significant shift in market expectations over the past few days.
Prominent analysts Michael and Esther have highlighted that President Donald Trump has proposed to refinance the US debt at lower interest rates, a move that could lead to an economic slowdown or recession.
However, lower inflation could aid in achieving this goal, potentially leading to trillions in savings.
Moreover, the Bank of Japan’s interest rate decision is scheduled for March 18, which could also impact Bitcoin.
If the BoJ increases rates, global markets, including the S&P 500, could experience significant downside.
Inflation indicators, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), have shown steady declines.
This trend strengthens the case for a Fed rate cut in June or July.
Bitcoin Price Analysis
Crypto analyst Ali Martinez suggests that Bitcoin is currently consolidating within a triangle pattern, indicating a potential breakout.
The price is “coiled tight,” preparing for a significant 9% move.
Based on the pattern, an upward breakout could see Bitcoin targeting approximately $90,000, while a downward move could push it toward the $76,000 range.
Bitcoin is currently trading at $83,321.34, up approximately 1% in the past 24 hours.
Meanwhile, Bitcoin critic Peter Schiff predicted that Bitcoin could drop to the $20,000 price level in the coming days if Nasdaq crashes.
As seen in the daily chart, the Moving Average Convergence Divergence (MACD) indicator shows a slight bullish divergence, suggesting that upward momentum is building.
Using Fibonacci retracement levels, the key price support levels are at $80,797 (0.236 Fib) and $76,600 (cycle low), while the crucial resistance levels are at $91,152 (0.618 Fib), $106,617 (1.618 Fib), and $125,169 (2.618 Fib).
If Bitcoin successfully clears the $91,152 resistance, a move toward the $106,617 Fibonacci extension level becomes more likely, with further bullish momentum potentially pushing Bitcoin beyond $125,000.
