The price of Bitcoin has hovered around the $30,000 support level as Jerome Powell, Chair of the United States Federal Reserve, emphasized the likelihood of further interest rate hikes. Speaking at the ECB Forum on Central Banking 2023, Powell indicated that despite a recent pause in the hiking cycle, more policy tightening is expected due to the relatively short duration of previous restrictions. He mentioned that there was majority support for at least two additional rate hikes in the future.
Bitcoin reacted cautiously to Powell’s comments, retracing its gains from the previous day and avoiding an immediate push towards new yearly highs. CryptoCon, a popular trader, described the current market situation as a temporary pause before potentially continuing to new highs. MicroStrategy’s announcement of purchasing over 12,000 BTC for its corporate treasury did not significantly impact Bitcoin’s price.
MicroStrategy now holds approximately 0.7% of the total potential BTC supply, with its aggregate cost basis averaging $29,668 per bitcoin. This significant investment places MicroStrategy well ahead of other public companies, including Voyager Digital, which holds the second-largest treasury with 12,260 BTC.