Artificial Bull Market?! MicroStrategy has purchased 4,020 BTC today at an average price of $106,237!

In this round of BTC bull market, MicroStrategy is undoubtedly one of the powerful driving forces. Figure 1 shows the historical purchase points of BTC by MicroStrategy over the years, and you will find that the frequency of purchases in the BTC 80k to 100k range is the highest ever. Think about it in reverse: if MicroStrategy is truly a firm believer in BTC, then why didn't they buy more BTC when it was in the 10k to 20k range? Here are two guesses: 1. They didn't have enough money to buy BTC at that time. 2. They were hesitant to buy more because market sentiment was very poor, and buying too much could lead to significant losses.

We can see that MicroStrategy's stock price has been strongly correlated with Bitcoin since 2020 (Figure 2). If I had to guess, it's actually because they enjoyed the benefits of rising stock prices brought by BTC's increase, that they began to shift the company's focus towards BTC, strongly binding their company to BTC.

Thus, a positive feedback loop is formed: Bitcoin price rises - company stock price rises - larger valuation, greater fame - can borrow more money - continue purchasing Bitcoin - Bitcoin price continues to rise. This is the purest form of finance, the purest form of a Ponzi scheme, and this round of BTC bull market is driven by institutions. It’s normal for retail investors to miss out; I’m just throwing out some thoughts and sharing what I see. Everyone is welcome to express their opinions in the comments section, and let’s discuss together.