The Bitcoin price volatility is once again drawing attention to MicroStrategy, the company whose strategy has become a major market reference point, with billions in accumulated BTC and a track record of aggressive buying during downturns.
As traders search for stability in a shaky market, Strategy’s stance is being watched closely for what it might signal about the next phase of BTC’s trend.
Why MicroStrategy’s Next Move Could Redirect Market Momentum Bitcoin’s recent volatility has put MicroStrategy (MSTR), the largest corporate holder of BTC, in the limelight.
Walter Bloomberg has revealed on X that analysts are watching closely to see if the company could influence the cryptocurrency’s price if it sells some of its holdings. Related Reading: Will Strategy Liquidate Bitcoin Holdings?
CEO Provides Concerning Clues According to JPMorgan, Strategy can avoid forced sales as long as its enterprise value-to-BTC holdings ratio stays above 1.0, which currently stands at 1.13 BTC.
However, analysts continue to debunk these claims, accusing JPMorgan of spreading misinformation about market manipulation and the company. Walter stated that if the ratio remains above this level, BTC markets may stabilize and ease recent market pressure.
Due to the market pressure, the firm has slowed its BTC purchases, adding 9,062 BTC last month compared to 134,480 BTC a year ago, reflecting a more cautious accumulation approach amid a broader crypto downturn. Its stock has dropped roughly 42% over the past three months.
Additionally, challenges include the potential exclusion from MSCI indices, which could trigger $8.8 billion in passive fund outflows if index funds are forced to divest. However, MicroStrategy holds a $1.4 billion reserve for dividends and interest, helping it avoid selling its BTC even if the price falls further.
In the meantime, there is no proof that MicroStrategy is in danger of liquidation. How Institutional Behavior Builds A Higher Floor For Bitcoin In a market speculation, Bitcoin is currently experiencing one of the most significant capital migrations in its history, fueled by institutional adoption.
Analyst Matthew noted that the current BTC market cycle from 2022 to 2025 has already absorbed an unprecedented amount of new capital, surpassing all previous BTC cycles. This growth is a reflection of the market’s maturity and the ecosystem’s innovative approach to liquidity through regulated instruments.
Furthermore, the network has incorporated more than $732 billion in fresh capital in the current cycle, surpassing the $388 billion that was injected during the 2018 to 2022 cycle.
At that time, the surge helped push BTC market capitalization to an all-time high record of $1.1 trillion, a metric that indicates a much higher aggregate cost base for new institutional investors.
Related Reading: Why Bitcoin Traders Fear A Repeat Of July 2024’s Crash Next Week Meanwhile, the total settlement volume in the decentralized BTC protocol was approximately $6.9 trillion in just 90 days.
Despite this, the number of active on-chain entities dropped from 240,000 to 170,000 per day, which is a reflection of liquidity migration of capital flows into spot ETFs. Featured image from Pixabay, chart from Tradingview.com
Cantor Fitzgerald analysts significantly lowered their price target for Strategy (MSTR) shares, while reiterating an “Overweight” rating.
Bitcoin has been struggling to build momentum in recent weeks, and the return of cash into the system is raising questions about whether this could be the moment that changes the tone of the crypto market.
That growing sense of anticipation has already started to show up in prices, with the total crypto market cap climbing more than $250 billion from its $3.016 trillion low on December 2.
What Happened: The Liquidity Injection And Why It Matters After officially bringing its multi-year quantitative tightening (QT) program to an end, the central bank followed up with a $13.5 billion overnight repo operation, funneled through the New York Fed.
Banks brought $13.5 billion in Treasuries to the Fed, the Fed accepted all of it, and instantly injected $13.5 billion of fresh reserves into the system.
Related Reading: A Bitcoin Parabolic Rally Is Coming: Eric Trump Shares Why First Family Is Pro-Crypto The move, which is the second-largest liquidity injection since the COVID-19 crisis, effectively puts an end the steady shrinkage of bank reserves that has persisted for years, easing pressure on short-term funding markets and signaling a more accommodative liquidity environment.
The crypto market responded almost instantly. A handful of major assets began turning green within hours of the injection, with Bitcoin leading the charge with an instant break above $92,000.
The influx was visible at a macro level as well: the total crypto market cap climbed from a December 2 low of $3.016 trillion to $3.269 trillion by December 4.
A gain of more than $250 billion in under 48 hours What Investors Should Watch Next Ending QT leads to better liquidity and often create a bullish environment for equities and other riskier investments like cryptocurrencies.
However, although a single liquidity event does not guarantee a sustained multi-month rally, this injection stands out not just for its size but for what it represents.
Related Reading: 4 Bitcoin Indicators That Led To Market Rallies In The Last 2 Years Have Returned In a CNBC interview, Fundstrat’s Tom Lee stated that the Fed’s decision to stop QT will be a turning point for the cryptocurrency market.
Lee pointed out that the last time the Fed ended QT, the market rose about 17% within three weeks. The previous time the Fed brought quantitative tightening to a stop was in July 2019, roughly a year after it began reducing its balance sheet. In the three weeks that followed, the S&P 500 climbed about 5%.
Bitcoin’s also initially rallied in the same period, but its strongest reaction came months after, towards late 2019 and early 2020. Featured image from Pngtree, chart from Tradingview.com
Corporate Ether acquisitions declined 81% in the past three months, but the largest corporate ETH holders continued to scoop up billions of dollars in Ether.
ProCap BTC’s Jeff Park reveals how institutional flows and ETFs could shorten Bitcoin’s market cycle — with major implications heading into 2026
Bitcoin is back below the $90,000 mark as Ethereum flirts with another dip below $3,000—all while major stock indices stay green.
The IMF released a report that campaigns in favor of CBDCs and warns against the risk stablecoins represent, sparking criticism among crypto experts.
The company has approached traders, including sports bettors, about joining the effort as it expands in the US and rival Kalshi faces scrutiny over similar practices.
The White House's new National Security Strategy emphasizes increased global fiscal expansion and military spending.
Hedera's token retreats despite fresh institutional product speculation driving broader altcoin momentum.
The collapse of Do Kwon's Terraform project caused losses that surpassed those by Sam Bankman-Fried's FTX, Celsius and OneCoin combined, the prosecutors argued.
A lawmaker in Indiana introduced legislation that would broaden access to Bitcoin and crypto exposure for savers in the Midwestern state.
Federal prosecutors reserved the right to pursue up to 12 years for Terra founder Do Kwon in an August plea deal. Now, they’re seeking that maximum.
Poland’s parliament upheld a veto on the Crypto-Asset Market Act, delaying EU-aligned regulation and deepening divisions over security and innovation.
The scheme enabled overseas DPRK operatives to access sensitive government systems through fraudulent IT jobs.
Crypto majors were broadly lower, falling 2–4% with BTC down 2% at $91,400, ETH down 2% at $3,130, BNB down 2% at $893, and SOL down 4% at $136, while ZEC (+4%) and TRX (+2%) led the day’s top movers.
BlackRock CEO Larry Fink said sovereign wealth funds have been steadily accumulating Bitcoin, adding that they “bought more” as BTC declined from $126K into the $80K range to build long-term positions.
The IMF warned that rising stablecoin adoption could weaken central bank control in a new report examining currency substitution and monetary sovereignty risks. Solana and Coinbase’s Base network were linked through a new bridge secured by Chainlink and Coinbase infrastructure.
The CFTC also approved spot crypto trading on CFTC-registered exchanges, with Bitnomial set to debut first. In the U.K., Reform UK received the country’s largest-ever political donation from a living donor—an $11.4M contribution from a Tether-linked investor.
Meanwhile, recent research indicated that the ~$4B in Bitcoin ETF outflows seen in October–November stemmed primarily from leveraged basis-trade unwinds across major funds rather than investor panic.
With the acquisition, Paribu gains regulatory foothold in Bahrain and Dubai and access to the region's fast-growing crypto user base.
A sentencing recommendation said that Do Kwon had caused more losses than Sam Bankman-Fried, Alex Mashinsky and Karl Sebastian Greenwood combined.
VanEck’s Matthew Sigel argues MARA’s valuation looks expensive when adjusted for its leverage and capital structure.
Digital-asset treasury plays that once traded at big premiums have fallen back toward net asset value.
