Bitcoin rebounds $100K as MicroStrategy announces new purchase

Bitcoin received another boost from MicroStrategy, a U.S. software company renowned for large Bitcoin investments, as it announced 1,070 BTC purchases on Monday, propelling its price past $100,000.

On Tuesday, Bitcoin opened at nearly $102,000, marking the first time since Dec. 19 that the cryptocurrency surpassed the $100,000 mark.

MicroStrategy’s purchase added $101 million worth of Bitcoin at an average price of $94,000 per BTC, increasing the company’s total holdings to 447,470 BTC.

The company’s average acquisition cost now stands at $62,500 per Bitcoin, reinforcing its position as a major player in institutional cryptocurrency investment.

Bitcoin’s exchange rate stands at $101,910 by 0844 GMT, accounting for a daily increase of 2.85%.

Bitcoin as hedge

According to analysts, Bitcoin’s price is nearing a critical resistance level of $102,750. The cryptocurrency’s robust performance comes amid anticipation surrounding the U.S. non-farm payroll data scheduled for release on Friday, a key indicator for Federal Reserve policy decisions.

In a recent assessment, JP Morgan highlighted Bitcoin’s growing appeal as a hedge in the face of ongoing geopolitical risks, persistent inflation and rising government deficits in major economies.

Investors are increasingly turning to Bitcoin as a “safe haven” asset, a sentiment that has driven demand since 2022.

Much of Bitcoin’s recent momentum is tied to speculation about potential policy shifts under the incoming Trump administration, set to take office later this month.

Investors are keenly watching whether Bitcoin might be declared a strategic reserve asset during the administration’s first 100 days in office.

For now, the market’s immediate focus remains on Friday’s employment figures, a critical data point expected to shape the Federal Reserve’s near-term monetary policy.