Over the past three days, Bitcoin [BTC] has been in a consolidation phase, with its value oscillating within a specific range of $56K to $59K.
As speculations arise from analysts suggesting a potential drop in BTC below the $51K support level, a fresh trend has surfaced that could heighten the chances of a price adjustment.
Could the corporate sector serve as the next covert driving force behind Bitcoin’s resurgence? CryptoCrypto delves into the investigation.
Firms are Increasing Accumulation of BTC
Through a recent X post (formerly Twitter), a study showcased a 30% increase in businesses adopting Bitcoin within a year.
In a broader context, the study identified 52 publicly traded firms holding Bitcoin, a figure that has risen by 40% over the last year.
As per CryptoCrypto’s analysis of the study, a noteworthy yet understated trend is starting to take shape.
While much attention has been on individual investors, large corporations, and investment firms making significant BTC purchases, small businesses are steadily contributing to the Bitcoin ecosystem.
Currently, businesses jointly possess over 3% of the total circulating Bitcoin supply – a remarkable surge of 500% over recent years.
A noteworthy development is that businesses have now outpaced governments in their Bitcoin accumulation.
If this trajectory continues, businesses might soon rival ETFs in their Bitcoin holdings, amplifying Bitcoin’s financial importance.
Clearly, businesses are recognizing Bitcoin as a means of preserving wealth over time. Yet, can it withstand volatility and sustain its value?
Enterprises Demonstrate Strong Confidence in Bitcoin
Interestingly, the study unveiled a significant observation: Bitcoin ownership among businesses is predominantly concentrated among the five largest holders.
The quintet – MicroStrategy, Block.one, Tether, BitMEX, and Xapo – collectively hold 82% of all Bitcoin holdings, amounting to 559K BTC.
Notably, MicroStrategy and Tether have accounted for 85% of the reported BTC acquisitions in early 2024, acquiring an average of 269 BTC daily since late 2022.
In essence, substantial Bitcoin holdings by businesses have played a pivotal role in elevating BTC’s value, consistently propelling its price upwards despite broader macroeconomic disturbances.
However, BTC entered September on a bearish trajectory, with short positions dominating the derivatives market, leading to BTC remaining below the $60K mark.
Given the insights from the study regarding significant Bitcoin holdings by a handful of major business entities, could they potentially be behind the recent pullback?
MicroStrategy’s Data Indicates…
On April 29th, MicroStrategy disclosed its Q1 financial report, disclosing its possession of 214,400 Bitcoin. The company has procured an additional 25,250 Bitcoin at a total expenditure of $1.65 billion, averaging $65,232 per coin.
As illustrated in the graph, MicroStrategy’s Bitcoin holdings have surged over tenfold in the last four years, escalating from 21,000 in early 2020 to 216,000 presently.
Meanwhile, the U.S. government has been vigilant about its Bitcoin reserves, regularly depositing BTC into exchanges.
In essence, major enterprises have held onto their Bitcoin despite short-term price fluctuations – a clear bullish signal.
In a further boost to this optimism, the study highlighted the increasing perception of Bitcoin as a store of value, projecting that business adoption could approach 1 million by 2026.
Thus, CryptoCrypto anticipates that Bitcoin might be on the brink of a price adjustment, with the outcome ultimately contingent on institutional investor actions and astute traders.