Bitcoin Price Nears $103K as MicroStrategy Makes Another BTC Purchase

Bitcoin received another boost from MicroStrategy, a U.S. software company renowned for large Bitcoin investments, as it announced 1,070 BTC purchases

U.S. software company MicroStrategy (NASDAQ:MSTR) announced on Monday the purchase of 1,070 BTC, boosting the price of the cryptocurrency past the $100,000 mark for the first time since Dec. 19.

Opening at nearly $102,000 on Tuesday, Bitcoin crossed the $100,000 threshold on Monday evening.

The purchase by MicroStrategy added $101 million in Bitcoin at an average price of $94,000 per BTC, bringing the company's total holdings to 447,470 BTC.

The company's average acquisition cost now stands at $62,500 per Bitcoin, solidifying MicroStrategy's role as a major player in institutional cryptocurrency investment.

At 0844 GMT, Bitcoin was trading at $101,910, up 2.85% for the day.

Bitcoin as hedge According to analysts, BTC/USD is now approaching a critical resistance level of $102,750.

The cryptocurrency's strong performance comes ahead of the U.S. non-farm payroll data on Friday, which is expected to influence the Federal Reserve's monetary policy decisions.

In a recent analysis, J.P. Morgan highlighted Bitcoin's increasing appeal as a hedge against geopolitical risks, persistent inflation and rising government deficits in major economies.

Investors have been regarding Bitcoin as a “safe haven” asset since 2022, which has been driving demand for the cryptocurrency.

Much of Bitcoin's recent momentum is linked to speculation about potential policy shifts under the incoming Trump administration, which will take office later this month.

Investors are particularly interested in the possibility of Bitcoin being declared a strategic reserve asset during the administration's first 100 days in office.

However, the market's immediate attention is on the upcoming employment figures on Friday, which are expected to impact the Federal Reserve's monetary policy in the near term.