According to several crypto experts, if MicroStrategy and El Salvador had not come in aid of Bitcoin, it would not have been possible for Bitcoin to overcome the latest dip which occurred at the end of last week. Both were unstoppable forces that helped Bitcoin to rebound and regain the US$ 6,000 value that it had lost.
Last week Bitcoin was forced to feel the gravity which resulted in the loss of US$ 6,000 instantly. Bitcoin was otherwise trading @ US$ 59,380 and after losing value it went down to US$ 53,000 plus.
The dip also failed “Plan B”, which is a plan at Twitter forecasting future Bitcoin values. At least for three months, from August to September, the plan worked in accordance with the predictions. However, for the month of November, the plan predicted Bitcoin’s future value to be around US$ 98,000. Instead of a price surge, there was a value decrease that happened last week. However, Bitcoin showed immense resistance and in a matter of a few hours went back at the price range of US$ 59,000 plus.
At first, crypto experts failed to apprehend the reasons why Bitcoin rebounded so quickly. However, it became apparent soon enough that it was the massive investment that came into effect during and soon after the dip.
According to crypto experts, there were two prominent reasons for a quick rebound. One such reason they determined to be MicroStrategy’s latest Bitcoin purchase. The other reason was the acquisition of Bitcoins made by El Salvador.
After coming to know that Bitcoin succumbed to a massive dip, El Salvadoran Government responded immediately. In a single purchase attempt, El Salvadoran Government spent US$ 53,798 per coin for acquiring a hundred BTCs.
On the other hand, it was MicroStrategy that stole the show. The company single-handedly purchased 7,002 BTCs for a price of US$ 441.4 Million. When there is a huge investment for Bitcoin such as MicroStrategy, then Bitcoin’s value surges immediately and efficiently. Michael Saylor, MicroStrategy’s CEO also commented that there is no comparison of Bitcoin with any other known asset, even if the asset is “Gold”. He also opined that Bitcoin is a property and the owners enjoy property rights irrespective of where ever they are.
There is also a third reason as well. It is usually believed that at the end of a year, the crypto economy rallies till the initial months of the New Year.
On the other hand, there is a debate going on in the US that involves Fed. Chair, Jerome Powell. Powell’s tenure at the Fed. The chair has come to an end, however, his name has been again nominated for the said post. People from the crypto community are objecting to Powell’s nomination proposal. They believe that if he is re-appointed then he could lower the crypto economy considerably.