Large Bitcoin Purchases Indicate Institutional Investors Are Still Buying the Dips

Michael Saylor, CEO of MicroStrategy Inc., is letting the public know that his company now owns another 314 bitcoins, bringing the organization’s total to a whopping 70,784 bitcoins. That’s according to a tweet from this morning.

Some crypto purists argue that public figures like Saylor are simply pumping up the price of Bitcoin in making these announcements so that they can dump them on retail investors at a higher price down the road and turn them for a profit.

That narrative is certainly compelling, but it should be noted that Grayscale Investments, the world’s largest institutional HODLer, is also continuing to buy the dips.

It turns out the CEO of Grayscale, Michael Sonnenshein, is also a fan of posting major announcements on Twitter. He’s stating that within the span of five business days, the company recently raised more than $1.276 billion USD in the name of buying more Bitcoin. A recently archived SEC filing backs up the announcement.

Why Investors Keep Buying the Dip

Crypto investors with a long-term strategy are always going to buy the dip. And yet, it’s totally logical to assume that we might see a 30% dip (if not more in the next few months) because Bitcoin and the crypto market as a whole has been on fire for the last several months and well, what goes up must come down.

Yet we are seeing more short-term purchases rather than sales of crypto. Part of that is because of the fact institutional investors maintain a long-term bullish sentiment about cryptocurrencies. However, they might also be feeling encouragement as a result of recent statements made by Janet Yellen.

She’s only a few steps away from being the first ever female Treasury Secretary in the history of the United States. She’s been putting out bearish views on cryptocurrencies for quite a while now. Yet, another report says that Yellen believes governments must consider the benefits of cryptocurrencies. Perhaps investors think that her recent bearish statements were meant to cloak her truly bullish sentiment in a conservative light just so that she has her bases covered.

We’ll see what the future holds, but it seems like investors are just going to keep piling in for the long haul.

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