Bitcoin Rises Amid Corporate Purchases

Bitcoin rose on Tuesday, remaining close to recent record highs after major corporate holder MicroStrategy announced more purchases of the cryptocurrency.

The prospect of friendlier U.S. regulations under a second Donald Trump presidency continued to support crypto prices, following Trump’s election win earlier in November.

Bitcoin increased by 0.8%, reaching $91,359.6 by 00:30 ET (05:30 GMT). The world's largest cryptocurrency hit a record high of $93,226.6 last week.

MicroStrategy Buys Record $4.6 Billion in Bitcoin

MicroStrategy Incorporated (NASDAQ:MSTR) disclosed on Monday that it purchased approximately 51,780 Bitcoin in the past week for roughly $4.6 billion in cash, averaging $88,627 per Bitcoin.

This acquisition was the company’s largest cryptocurrency purchase to date, further solidifying its position as the world's biggest corporate holder of Bitcoin. MicroStrategy now holds a total of 331,200 Bitcoins and has indicated plans for further purchases in the coming years.

Shares of the firm, which closely mirror Bitcoin prices, surged nearly 13% to a record high after Monday's announcement. MicroStrategy's stocks have flourished since Trump’s election victory earlier this month.

Led by Bitcoin advocate Michael Saylor, the firm has consistently taken on new debt over the past three years to grow its Bitcoin reserves. Saylor has also reiterated plans to issue more debt offerings in the coming years to buy more Bitcoin.

Crypto Prices Cool Post-Trump Election Rally

Despite Bitcoin’s relatively stable price, broader crypto prices appeared to be cooling down as optimism surrounding Trump's presidency subsided, and markets await to see what his administration will bring for the crypto sector.

Most major altcoins remain close to recent peaks, but the pace of their gains seems to be slowing after nearly two weeks of consistent rises.

Trump’s victory initially sparked significant gains in crypto prices due to his pro-crypto stance. However, actual policy changes from Trump are being eagerly anticipated, as he is set to assume office in about two months.

Among major altcoins, Ether saw a slight increase to $3,134.55, remaining near a recent three-month high. SOL, XRP, and ADA pulled back after rapid rises in previous sessions, while MATIC rose by 5%.

Meme token Dogecoin outperformed its peers with a rise of over 5%, staying close to a three-year high. The token nearly doubled in value after Trump's victory and gained traction from social media buzz after Trump's mention of it in connection with the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy.