Four Reasons for Bitcoin’s Success
At the start of September, we identified four factors that gave Bitcoin a strong chance to break historical trends. The result? Not just growth, but Bitcoin’s best September in history with a 7.8% return.
Spot Market Demand Drives Growth
Increased demand on the spot market played a key role. By the end of September, net buying reached new heights.
Most spot market coins are bought and then moved to cold wallets, anticipating long-term gains. This trend is supported by a sharp reduction in exchange reserves, which dropped by 122,000 BTC (worth $7 billion) over the past two months.
Institutional Investors Show Interest
More institutional investors are turning to Bitcoin as a portfolio diversification tool. On September 19, we reported that BlackRock, the world’s largest asset manager, recommended adding a “pinch” of Bitcoin to portfolios. Its low correlation with traditional assets and strong three-year returns make it an attractive option.
MicroStrategy Leads in Long-Term Investment
Among publicly traded companies, MicroStrategy stands out as a major long-term Bitcoin buyer. Excluding a tax move in 2022, the company has consistently bought Bitcoin over the past five years. In September alone, MicroStrategy purchased 25,700 BTC for $1.6 billion. Currently, it holds 252,200 BTC worth $16.1 billion.
Other Companies Follow MicroStrategy’s Lead
MicroStrategy’s strategy has inspired other public companies to follow suit. This year, Japan’s Metaplanet and the U.S.-based Semler Scientific have also announced a shift in their financial strategies, choosing Bitcoin to preserve their earnings.
