MicroStrategy Buys More Bitcoin

Michael Saylor buys the dip, regulation is coming, and Tesla + BTC?

MicroStrategy Adds BTC

MicroStrategy bought bitcoin… again!

CEO Michael Saylor announced via Twitter that the company bought another 29,646 BTC for a total of $650 million. That’s an average of roughly $21,925 per BTC.

MicroStrategy now #HODLs 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin.

The company bought the dip, reaffirming long term bullish sentiment held by a growing list of large cap bitcoin holders.

New Support Levels?

Bitcoin might have found support at $22,000.

After reaching new all time highs above $24,000, the world’s largest cryptocurrency by market cap fell over the weekend. Despite hitting the low $22,000s, bitcoin quickly bounced back, settling around $23,000.

We cannot, however, rule out a further pullback to previous support at $18,500. If we see that significant a pullback, $17,500 also remains in play.

More Regulation Coming

Last week, the U.S. Treasury Department proposed new requirements that would force banks and exchanges to maintain and submit customer information for any cryptocurrency transfers to “unhosted” wallets.

What does this mean?

In short, if you use a crypto wallet that has not required you to provide any personal identification in order to use it, you may soon have to do just that.

There’s a lot of details to be ironed out. Read this Bloomberg story that breaks down the proposed regulations. Here’s what we know:

  • Banks and exchanges would need to keep records and verify identity of recipients of transfers over $3,000

  • More requirements for transactions over $10,000

  • Banks and exchanges would need to keep records of those using unhosted wallets

The Silver Lining

More regulation means that mainstream adoption is real. We’re at a point where progress seems inevitable.

The Crypto Purist Take

On the other hand, more regulation and know your customer regulations diminishes the entire point of why bitcoin and certain cryptocurrencies exist.

We’ll keep on eye on how this develops.

Tesla and Bitcoin?

Elon Musk is no stranger to Crypto Twitter.

Over the past few days, followers of Musk have been encouraging him to convert Tesla’s treasury reserves into bitcoin. Among those recommending he do so—Michael Saylor (surprise, surprise).

On Monday, Tesla joined the S&P 500.

The company is the 6th biggest by market cap in the S&P. Shares fell during its debut as the overall market opened down on news of a new coronavirus strain in the UK. The market seesawed throughout the day, eyeing a more even close.

How to Mine Ethereum in 2020

$22,852.21—the price of bitcoin today.

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