After notable selling pressure during Asian Trading hours, the cryptocurrency market is recovering. This recovery comes following the announcement by Marathon Digital, the world’s largest Bitcoin miner, of a $250 million Bitcoin purchase.
Marathon Digital’s recent Bitcoin purchase announcement
On August 12, 2024, Marathon Digital announced that they are planning to raise $250 million of funds by issuing special debt called convertible senior notes that will mature in 2031. A Convertible Senior Note is something superior to other debt instruments. In this, the holder of convertible senior notes will be paid before other creditors.
However, these investments are coming from qualified institutional buyers who have options to turn their investment into company shares.
In the announcement, Marathon stated that it plans to allocate a significant $250 million in funds to buy additional Bitcoin. However, on July 25, 2024, the firm has already increased its Bitcoin holdings by $100 million. Additionally, they announced that “we are once again adopting a full HODL strategy.”
Impact of Marathon Digital on BTC price
This recent announcement by industry giants has the potential to attract investors, whales, and retailers. Meanwhile, following this announcement, the price of BTC experienced an upside momentum of 4% from $57,700 to $57,800 level.
At press, time it is trading near $59,750 level and has experienced a price decline of 1.2% in the last 24 hours. Meanwhile, its trading volume has increased by 93% during the same period. This increase in trading volume suggests higher participation from traders and investors following the announcement.
Bitcoin technical analysis and upcoming levels
According to expert technical analysis, BTC looks bullish as its price once again comes above the 200 Exponential Moving Average (EMA) on a daily time frame. The price of BTC above the 200 EMA suggests it is in the uptrend on a higher time frame.
This announcement has prevented BTC from experiencing further selling pressure and has turned the sentiment bullish. If this sentiment continues and BTC price closes a daily candle above the $62,000 level, there is a high possibility it could experience a massive upside move to the $66,000 level in the coming days.
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