MicroStrategy has recently been aggressively buying Bitcoin, significantly supporting the price. This year, the amount of Bitcoin this company has purchased accounted for 77% of the company's net purchases!
From May 12 to 18, they spent $764 million to buy 7,390 Bitcoins at an average price of $103,500. Now, they hold 576,000 Bitcoins with an average cost of only $70,000, making a considerable profit.
However, if you are not sensitive to macroeconomics, Trump's movements, and monetary policy issues, it is best not to play short-term trades. The market is easily influenced by major events right now. If Trump tweets, the US stock market could plummet by 20%, and with another tweet, it might rise by 20%. Who can predict that?
Data shows that in the first half of this year, the market has been very volatile, and retail investors have lost 250,000 Bitcoins, while large holders are quietly bottom-fishing. With macroeconomics, politics, and monetary policy being quite uncertain, no one can accurately predict the next market movement.
In the long term, the current tariff policy is not bad, and monetary policy is also in a game of strategy. Next, the market will focus on the June Federal Reserve dot plot, as well as whether the tariff policy in July will be paused or intensified. Whether Trump and Federal Reserve Chairman Powell can reach an agreement is also crucial.
Trump wants Powell to cut interest rates; otherwise, the economy may collapse or he must make concessions on tariff issues. Now, the 10-year US Treasury yield exceeds 4.5%, and Trump is likely anxious. Worse yet, Moody's has downgraded the US credit rating.
