The past few days have been good news for Bitcoin as multiple big name companies revealed their large Bitcoin investments. Most notably the mobile payment company Square, co-founded by Jack Dorsey of Twitter fame, recently invested $50 million into Bitcoin, buying 4,709 coins and making up 1% of its total assets.
This follows news last August that the billion dollar software company Microstrategy purchased 21,545 BTC valued at around $250 million. Microstrategy is a Class A NASDAQ-listed company with a market cap of $1.6 billion. It promotes itself as the “largest independent publicly traded business intelligence company”.
Following the investment, Microstrategy CEO Michael Saylor called Bitcoin a “dependable store of value and an attractive investment asset”. More recently, Saylor tweeted his belief in Bitcoin as a long-term investment, saying:
“If your investment time horizon is one year, anything might work. If your investment time horizon is one century, one thing might work. #Bitcoin”
The investments certainly seem to have helped boost the price of BTC, which as seen an 8% increase this past week. After reaching a low of $10,600 on Wednesday, Bitcoin began climbing, jumping to almost $11,400 yesterday. It is now trading sideways in a tight range between $11,340 and $11,390.
Other top 10 coins including Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Chainlink (LINK) all enjoyed similar gains, with LINK up a huge 13.3% this week. Now analysts are questioning whether this bull run can hold or if we will see another correction in the coming days.
A crypto and options trader on Twitter, Kaleo (@CryptoKaleo), recently noted a graph he plotted back in February of 2019 that shows BTC following his predicted trajectory perfectly. Should the graph continue to pan out as planned, BTC should break above $15,000 in the coming weeks.
Further validating the possibly of more gains, BlockTower Capital co-founder Ari Paul has voiced his optimism in the market. In a tweet posted earlier this week, Paul notes that news gains such as these after “explicitly bearish news is a strong indicator of underlying market strength.”
This means Bitcoin is now more likely to see parabolic gains than any time since March this year, according to Paul. The bullish sentiment seems to be strong across all of Twitter, with some users stating that Bitcoin is now at the “disbelief” stage of the market cycle.
A common graph used to judge future movements of assets, the ‘Wall St Cheat Sheet‘ charts typical human sentiment during the market cycle of an asset. Following the ‘disbelief’ stage an asset usually starts to rally to new highs, moving through other emotions of Hope, Optimism, Thrill and Euphoria.
According to analysis by popular economist Willy Woo (@woonomic), these new investments are just the “tip of the iceberg” as the total amount of BTC moved off exchanges by other “unannounced investors” in the past 8 months is 250,000. This amounts to around $2.76 billion and indicates a strong believe amongst wealthy investors that Bitcoin will soon begin to increase in value dramatically.