Bitcoin’s (CRYPTO: BTC) price rose on Monday due to several big-name investors who “bought the drop” over the weekend. Bitcoin was up 6% in the previous 24 hours as of 4 p.m. ET. Other prominent cryptocurrencies like Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) were also trading higher, up 7% and 8%, respectively, as is typically the case.
A technology business named MicroStrategy (NASDAQ: MSTR) and even a country, El Salvador, were among the Bitcoin purchases over the weekend. Shares of Bitcoin trading platform Coinbase Global (NASDAQ: COIN) climbed 5% today. Hence it appears that the market believes many retail investors purchased the drop as well.
Outlook on Crypto market
MicroStrategy has acquired 7,002 Bitcoins in recent weeks, according to a filing with the Securities and Exchange Commission (SEC). The acquisitions were made between October 1 and November 29, costing a total of $414 million. With these 7,002 additional Bitcoins, the corporation now has 121,044 Bitcoins in its possession, valued at an average of $29,534 apiece.
Investors may argue that MicroStrategy would be better off putting its funds to work growing the company. However, it’s difficult to dispute the outcomes thus far. Yes, the corporation has spent $3.57 billion. However, as of this writing, those digital assets are worth more than $7 billion. This profit totals more than $3 billion, which is more than MicroStrategy’s entire market worth when it purchased its first Bitcoins last year.
Coinbase values its customers’ trust in the Bitcoin market. In the third quarter of 2021 alone, the business enabled $327 billion in trade activity. As volatility subsided, this was a 29 percent decrease from the previous quarter. Nonetheless, it was a more than six-fold rise from the previous year. Since trade volume accounts for most of Coinbase’s income, the business is keen to see trading volumes remain stable.
Coinbase, on the other hand, is working hard to build a future that isn’t reliant on the volatility of Bitcoin trading. The firm made $145 million in subscription and service revenue in the third quarter, accounting for approximately 12% of total sales. Coinbase’s non-trading income has never been higher, indicating that the company is successfully diversifying its revenue, which is vital for long-term shareholders.