Strategy's large bitcoin purchases serve as major catalyst for price spikes

In recent months, the Strategy firm has announced large-scale bitcoin purchases, prompting market analysts to scrutinize its influence on the asset's price hikes. According to Bloomberg, some experts see the company as a key driver in the digital market.

Between May 5 and May 11, Strategy purchased $1.34 billion worth of bitcoins. The token surged 9% along the way, as stated by the agency. This compares to the three weeks when the cryptocurrency fell the most, during which the firm made no purchases.

The idea that Strategy's activities have a significant impact on bitcoin's market dynamics is fully supported by Gustavo Gala, an analyst at Monness, Crespi, Hardt & Co. The timing of the company buying tokens closely follows the asset’s market price, he said. 

Earlier this month, Strategy revised its fundraising strategy after announcing a record first-quarter loss. The updated investment target is now $84 billion, Bloomberg reported.