Bitcoin (BTC) finally broke over critical resistance of $40,000 levels earlier today, and is now trading 2.39 percent higher at $40,350, with a market worth of over $750 billion. The Bitcoin price struck a 3-week high and a recent push above $40,000, according to the on-chain data provider, with a large exchange outflow. The world’s largest cryptocurrency’s exchange flow balance becoming negative on Monday was unquestionably a bullish sign.
Over the last few days, Bitcoin has shown bullish momentum, giving investors and analysts hope for its trek to the north. Furthermore, El Salvador’s decision to make Bitcoin legal tender has created a lot of attention, with several Latin American governments showing interest in jumping on board.
As per market analysts, if Bloomberg manages to move past the 200-DMA above $40,500, it will be setting itself up for its next move to $50,000.
At the same time, Bitcoin (BTC) continues to receive praise and backing from global billionaires. On Monday, June 14, American billionaire and hedge fund manager Paul Tudor Jones showered praised for Bitcoin, saying that it serves as an excellent portfolio diversifier. He also announced a 5% portfolio allocation to Bitcoin.
MicroStrategy is selling $1 billion in common stock in order to purchase bitcoin.
MicroStrategy, a business intelligence company, announced two major announcements on Monday, June 14. First, it converted $500 million in corporate bonds due in 2028, and the corporation is considering investing this money in Bitcoin. MicroStrategy currently has around 92,000 employees.
Bitcoins are held in its treasury, with a total investment exceeding $2.2 billion.
The second piece of news is that the corporation is considering an open market agreement for the public sale of Class A Common Stock.
“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes,” the firm noted in the filing. “This includes the purchase of bitcoin.”
“The concentration of our bitcoin assets increases the risks inherent in our bitcoin purchase strategy,” the firm added. Servicing our debt will demand a large sum of money, and we may not have enough cash flow from our firm to pay our obligation.”