After spending several days at lows, Bitcoin finally broke above $38,500 again. The recent price increase may surprise many, but the factors behind it suggest it was already brewing. Here are three reasons pushing Bitcoin prices above $38,500.
MicroStrategy makes big Bitcoin bet
Michael Saylor’s MicroStrategy has been buying Bitcoin for about three years and has spent billions of dollars to date. However, even with its massive reserves, the company has not slowed down its purchases of cryptocurrencies that have seen prices rise over the past year.
On Thursday, November 30, Thaler revealed that the company is once again doubling down on its bet on Bitcoin. The post said the company had purchased $593 million worth of Bitcoin, totaling 16,130 BTC.
The company’s continued accumulation revived interest among investors, who quickly rushed back into the market. MicroStrategy’s massive buy bid is one of the main factors driving Bitcoin’s price.
Whales challenge Bitcoin
MicroStrategy isn’t the only large entity making a serious bid for Bitcoin. Other whales reportedly joined the action, buying hundreds of millions worth of Bitcoin in a very short period of time and causing a reduction in the available market supply.
One of the whales purchased more than 10,000 Bitcoins worth approximately $460 million. The relatively dormant whale wallet bought such a large amount of Bitcoin in November alone. Considering MicroStrategy buying, along with whale buying supply, it is what pushes the price above $38,000 again.
BTC bulls seize control | Source: BTCUSD on Tradingview.com
Greed takes over the market
The debate has seen one of the most impressive improvements in investor sentiment. After the Fear and Greed Index reached 71 points, market sentiment returned to extreme greed. The index uses a score of 1-100 to reflect investors’ feelings about the market.
A score of 1-24 is called extreme fear, and investors are very wary of the market. 25-46 is fear, one level below extreme fear, while 46-53 is known as the neutral zone. So from 54 to 74 is greed, and from 75 to 100 is extreme greed.
When the index is extremely greedy, it means that investor confidence in the market reaches its highest level. However, extreme greed is also accompanied by a market decline.
Currently, Bitcoin price has exceeded $38,300 and continues to show a bullish trend. If this trend continues, the digital asset could break through the $40,000 level before the end of the month.
Featured image from CoinTribune, chart from Tradingview.com