Bitcoin whales would defend these key prices in the market
Everyone is wondering the same thing, while bitcoin (BTC) is struggling to stay at the level of 40 thousand dollars per unit: will the cryptocurrency go lower? The actual answer will depend on many factors. Especially if we take into account that many attribute the collapse of this and other markets to political tensions between Russia and Ukraine. However, there are certain prices that may be key in the near future.
The wave of institutional investment that was unleashed in 2020 may have one of those keys: average purchase prices of the four publicly traded companies with the most BTC in their reserves. Those prices could become supportive if whales dock at those levels as a market valuation basis suited to their interests.
The closest purchase price to the current one among that list is that of Tesla. The second largest public company with the most BTC, Tesla currently has some 43,200 bitcoin in its possession, according to records from Bitcoin Treasuries. With a total purchase value of $1.5 billion, each Tesla BTC has an average purchase price of $34,700.
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If we take into account the influence of Elon Musk, founder of the company, in the cryptocurrency market, a future visit of the market at those prices could generate a defense of the employer so that there is no greater fall.
MicroStrategy’s purchase price is a bit further down: $30,200 is the average for Michael Saylor’s company, largest whale among publicly traded companies. In total, there are 125,051 BTC that they have acquired in an aggressive accumulation strategy.
Institutional whales below 30 thousand dollars per bitcoin
With Tesla and MicroStrategy above $30,000 for each bitcoin, there seems to be a good floor for the price of the cryptocurrency. Especially, because they are the two public companies with the most bitcoins.
But if the market crashes below that price (something It hasn’t happened since June of last year.), the next two public companies with the most BTC accumulation have entry prices in that range.
Marathon, third with the most coins to its credit (8,133), has its price average around $23,200. It is followed by Square, recently renamed Block, averaging $27,400 for each of its 8,027 BTC.
El Salvador, waiting to return to its price
While the main public companies with bitcoin in their coffers remain in the green with sustained supports for months, El Salvador is waiting for a new rise in the price that will paint its investment portfolio green.
Right now, the bitcoins owned by the Central American country are well below their average purchase price. At least according to records of @SalvadorTracker, a Twitter account dedicated to tracking the status of President Nayib Bukele’s investment in BTC. This account has as a reference of the purchases of El Salvador the 47,921 dollars per unit. The current price is 8% below that figure.
Could El Salvador have an impact to bring the price to those levels again? It is uncertain. Until now, this has not been the case. Perhaps, in part, due to the fact that its 1,801 BTC is little in relation to market volumes. Clearly, the country’s portfolio is smaller than that of the aforementioned companies. However, being the first country to officially adopt bitcoin as part of its economy, it is another major player in this ecosystem.
