Bitcoin rose 24% last week, surpassing Strategy’s average purchase price of $75,385 per coin for the first time since the entity began divesting its assets. Amid a record $2.7 billion in short liquidations within 24 hours as the price broke the $70,000 level, the entity holding 840,447 BTC chose to hold back.
The silent decision of the owner of this $63.36 billion Bitcoin hoard has become a major puzzle for the market.
Selling Shares, Hoarding Cash
According to recent data, Strategy did not buy or sell any coins for two consecutive weeks ending August 16 and August 23. The price at that time was already above their break-even point. Instead of expanding its crypto reserves, management sold 18.26 million MSTR shares between August 17 and August 23. The sale successfully raised $2 billion in fresh funds, while boosting the company’s cash reserves to $1.59 billion.
This holding pattern stands in stark contrast to last month’s maneuvers. In the week of August 3-9, the company sold 1,690 BTC worth $108.6 million - when the coin was trading at $64,262 - to buy back STRC shares.
What is the Impact on Market Direction?
Bitfinex analysts position Strategy’s next move as a trend setter. A return to accumulation mode by this entity is believed to strengthen bullish signals, while potential new sales at high levels could flood the market and create supply pressure. Given that they still have the option of a $1.25 billion Bitcoin monetization program approved by the board of directors, the company has plenty of room to maneuver.
Beyond this single corporate maneuver, institutional appetite remains stable. Spot Bitcoin ETF products in the United States garnered inflows of $1.9 billion in the week ending August 21, marking five consecutive positive trading sessions. This is supported by network on-chain activity remaining near an eight-year low. In short, coin holders are not yet willing to move their assets despite the improving price charts.
Three Price Lines of Defense
The Bitfinex report outlines three key levels for the next movement. The $73,500 mark is the first focus, representing the average purchase price for 3-6 month coin holders. If the price climbs higher, the $86,500 zone will be the main resistance for 18-24 month investors. Conversely, any decline must hold at $64,500, which is positioned as the final critical limit.
The $1.59 billion cash pile now gives Strategy the maneuvering room to be an aggressive buyer or a supply gatekeeper. For individual asset holders, monitoring this corporate order book deserves just as much attention as daily chart analysis.
Reported from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
