What to Know
- MicroStrategy bought $2.46B worth of BTC last week, marking its third-largest purchase ever.
- BTC price recovers above $115K after dipping to $111K, showing early signs of strength.
- Uncertainty from Fed policy and possible tariffs keeps macro pressure high.
Bitcoin price is showing signs of recovery after falling sharply to $111,886 last week. It has since recovered to more than $115,600, with recent trading showing a slight gain of 0.14%. Technical analysts are hopeful because the Relative Unrealized Profit (RUP) metric has calmed down from very high levels, and momentum indicators suggest that the market will consolidate instead of sell off.
According to Bloomberg, between July 28 and August 3, Strategy executed a major buy, adding 21,021 BTC at roughly $117,256 each, totaling about $2.46 billion. This is the third-largest corporate Bitcoin acquisition ever. After this purchase, Strategy now holds around 628,791 BTC, valued at over $72.5 billion, reinforcing its status as a dominant institutional Bitcoin treasury. This investment might be one of the reasons Bitcoin is rising again.
The Impact Explained
Strategy’s huge $2.46 billion buy of Bitcoin last week shows that institutions are still very optimistic about Bitcoin’s long-term future, even though average users are becoming less positive and the price is still very volatile in the short term.
Michael Saylor is now a Bitcoin buying machine, paying for his purchases with public market tools like stock and debt offers. The company’s most recent offering of preferred shares, called “Stretch,” shows how aggressively it is setting up its cash to invest more in cryptocurrencies.
What Now
As of this writing, the Bitcoin price is trading at about $114,300. This is a small drop from the earlier recovery. In the last 12 hours, the price action has become a little bearish. The inability to rise above $116K is creating a technical ceiling. Traders know this area as a psychological zone. CoinMarketCap says that the inability to close above it caused stop-loss orders and liquidations, which wiped out $37.47 million in long positions in the last 24 hours.
A wave of macro uncertainty makes the market even more fragile. The Federal Reserve kept interest rates steady at 5.25–5.5% during its policy meeting on August 4. However, the July jobs report was much worse than expected, which led to speculation about a rate cut.
At first, such speculation caused a short-term rise in Bitcoin prices. But the rise didn’t last long because Trump’s new tariffs on imports from more than 60 countries, which range from 10% to 50%, brought back fears of stagflation. At the same time, the U.S. Dollar Index (DXY) has risen sharply by 3% since July 30, which has hurt all types of risk assets.
What’s Next for Bitcoin?
Let’s observe if Bitcoin can get back to $116K and stay there for a few days. A clear break above that level could stop the recent downward trend and start a new upward trend in the short term. If this resistance zone keeps getting rejected, on the other hand, it could mean that lower support levels around $111K to $112K will have to be tested again.
Macro events like the upcoming U.S. inflation data and possible policy changes from the Federal Reserve or the Trump campaign could change how people see risk around the world. People who trade derivatives will also be looking at changes in funding rates and options skew to see if people are becoming more confident or if they are hedging against more losses.
Bitcoin’s recent price rise above $115K, after a sharp drop, shows that the recovery is fragile but hopeful. This is thanks to steady institutional demand, especially from Strategy’s historic $2.46 billion buy. But technical problems and big-picture problems keep making the short-term outlook less clear.
The market is left wondering if institutional conviction can keep prices stable in a time of rising uncertainty as Michael Saylor doubles down on his long-term Bitcoin thesis. There is still key resistance in place, and volatility is still bubbling under the surface. Only time will tell if this rally has legs or if more trouble is coming.
Also Read: Bitcoin Dips to 3-Week Low After Record July Rally
