Bitcoin finally broke above $38,500 once more after trading low for a couple of days. This latest jump in price may come as a surprise to many but the factors behind it suggest that it had already been in the making. So here are three reasons that drove the Bitcoin price above $38,500.
MicroStrategy Makes A Large Bitcoin Bet
For around three years now, Michael Saylor’s MicroStrategy has been buying Bitcoin, with billions of dollars already spent so far. However, even with its already massive stash, the company is not slowing down on buying the cryptocurrency which has risen in price over the past year.
On Thursday, November 30, Saylor revealed that the company had doubled down on its Bitcoin bet once again. According to the post, the company had purchased $593 million worth of Bitcoin, which came out to 16,130 BTC.
This continued accumulation by the company has renewed interest from investors who are flocking back into the market at a rapid. MicroStrategy’s large buying bid has been one of the major factors driving the Bitcoin price.
Whales Take On BTC
MicroStrategy is not the only large entity that has been bidding heavily on Bitcoin. According to reports, other whales have joined in on the action, buying up hundreds of millions worth of BTC in a very short time and driving the available market supply down.
One whale in particular purchased over 10,000 BTC worth around $460 million. The whale wallet which had been relatively dormant had bought up this massive stash of Bitcoin in November alone. Given MicroStrategy’s buying in addition to the whales buying up supply, it factored into driving the price above $38,000 once more.
BTC bulls seize control | Source: BTCUSD on Tradingview.com
Greed Takes Over The Market
Amid the fray, investor sentiment has seen one of the most impressive improvements. Sentiment has jumped back toward extreme greed after the Fear & Greed Index flashed a score of 71. The index which uses a score of 1-100 tells how investors are feeling toward the market.
A score of 1-24 is called extreme fear, where investors are very wary of the market. From 25-46 is fear, a step below extreme fear, while 46-53 is referred to as neutral territory. Then from 54-74 is greed, while 75-100 is extreme greed.
When the index is in extreme greed, it means investor faith in the market has reached its highest levels. However, reaching extreme greed has also coincided with a decline in the market.
Currently, the Bitcoin price has broken above $38,300 and continues to show bullish tendencies. If this trend continues, then the digital asset could be breaking above the $40,000 level before the month is over.
Featured image from CoinTribune, chart from Tradingview.com