Key Takeaways
- Microstrategy initiated its plan to double its BTC investment plan, with over 555,450 BTC acquired.
- MicroStrategy’s plan to increase its BTC investment plan shows strong long-term confidence in its price action.
- Crypto critics share a troubling feeling about MicroStrategy’s plan as BTC ranges ahead of the FOMC.
MicroStrategy continues to make the headlines in the media. The company that was formerly vested in software continues to pile Bitcoin in its reserve. It also plans to double its Bitcoin investment plan from the initial $42 billion to $84 billion as part of its 21/21 plan to aggressively expand its Bitcoin holdings.
According to Lookonchain data on X, MicroStrategy made a new purchase on May 5, 2025, bringing its total Bitcoin holdings to 555,450 BTC. Over $52.35 billion has been spent so far at an average price of $68,450 per BTC, with an unrealised profit of over $14 billion. This increase in holdings is over 2.5% of the BTC total supply, and it plans to make more purchases of over 38% of the $84 billion.
MicroStrategy’s plan to double its BTC investment reflects confidence in Bitcoin’s performance. Its founder, Michael Saylor, believes the price of Bitcoin could be headed to $500K to $1M per Bitcoin as institutional adoption sets in.
While MicroStrategy’s plan is supported by many crypto experts and analysts, many suggest that overreliance on Bitcoin could negatively impact altcoins and expose the crypto market to cascading liquidation if the price of BTC drops below its average buy point.
Although these critics and fears are valid, MicroStrategy has enjoyed some great profit returns and has continued applying its DCA (Dollar Cost Averaging) method of buying BTC, as this strategy has resulted in great returns over the past few years. Will BTC price eventually breakout to new highs with whale activities on the rise?
Bitcoin’s (BTC) Price Analysis Ahead Of FOMC
Source – BTC Price Chart From TradingView
Following a recent price rally from a region of $75,000 to a high of $97,800, the price of BTC has experienced a price range and slight retracement towards a low of $94,000, although current price action remains bullish as the price aims for a rally towards $100,000.
The current price action of BTC has been attributed to the FOMC (Federal Open Market Committee) meeting scheduled for May 7. This macroeconomic event could impact the price of Bitcoin and other financial assets as traders and investors are cautious.
There is strong speculation that the price of BTC will trade into key liquidity zones around $92,000 to $91,500 before rallying strongly to the upside ahead of the FOMC, with traders paying close attention to current price action.
A strong breakout for BTC above $100,000 could see the price trade towards a possible new all-time high in May, as this month has historically been a good trading month for BTC.
