Bitcoin drops to $95,420 after 135% gain YTD even as MicroStrategy’s move may allow higher inflows

Bitcoin Prices Today: Bitcoin prices declined in early trade on Thursday, December 26, even with cryptocurrency stockpiler MicroStrategy Inc. planning to issue more shares, allowing it to buy even more crypto tokens. The digital asset was down around three per cent at $95,420 in New York early Thursday. A broader gauge of cryptocurrencies comprising smaller tokens, including Ether, Solana and meme-coin favourite Dogecoin, were also down around three per cent in the holiday-thinned trading session.

According to a recent regulatory filing with the US Securities and Exchange Commission, MicroStrategy Inc. is seeking permission to increase the number of authorized shares of Class A common stock and preferred stock. Such a move would provide the company, which has transformed itself from a software maker into a Bitcoin accumulator, more firepower for crypto.

Also Read: Cocoa tops 2024 charts: Outperforms Bitcoin with a 180% rally

Bitcoin price trend in 2024

MicroStrategy announced earlier this week that it had purchased an additional $561 million of digital tokens at an average price near last week’s record high. That marked the seventh week in a row of purchases. According to Bloomberg, bitcoin has risen 135 per cent this year, exceeding returns from traditional investment classes such as global stocks and gold.

Coinbase Global was off two per cent on Thursday, while Riot Platforms and Mara Holdings shed over 2.5 per cent each. Some traders cautioned that markets could turn volatile in the coming day on massive expiries of open interest in Bitcoin and Ether derivatives. On Friday, a record $43 billion of open interest, including $13.95 billion in Bitcoin options and $3.77 billion in Ether options, will expire on derivatives exchange Deribit.

Also Read: Techie paid 10,000 Bitcoins for pizza in 2010, now worth ₹8000 crore

Additionally, the Bitcoin mining sector in the US has morphed into a multi-billion dollar industry over the last several years as the token saw exponential price increases. However, the total computing power generated from US-based miners is well below 50 per cent. According to industry analysts, domestic companies cannot power the entire network.

Meanwhile, stablecoin Tether, controlled by a company registered in the British Virgin Islands, still keeps many of its “reserves” in Bitcoin and unspecified loans and investments. It has been looking to expand into commodity finance. Tether has about $120 billion in tokens outstanding, roughly equivalent to a midsized US bank.

Also Read: Crypto miracle: ‘Meme coin’ donations fund US CEO’s daughter’s ₹3.4 crore brain tumor treatment