Institutions buy the dip against the market trend with $2.13 billion: The logic behind Strategy's repurchase of 22,305 Bitcoins

As Bitcoin prices experience a phased correction, the capital management giant Strategy chooses to go against the trend by increasing its holdings, investing approximately $2.13 billion to purchase 22,305 BTC, pushing its total Bitcoin holdings to 709,715 BTC, a new all-time high, accounting for about 3.5% of the current circulating supply. However, in contrast to this significant institutional buy-in, Bitcoin prices remain under short-term pressure, and the divergence between institutional capital inflows and market price performance is prompting investors to reassess the current battle between bulls and bears and the market’s pricing logic.

Event Recap: A textbook example of “Buying the Dip”

According to publicly available information, between January 12 and 19, 2026, Bitcoin experienced a correction. Amidst diverging market sentiment, the world’s largest publicly traded Bitcoin holder — Strategy (formerly MicroStrategy) — decisively executed its long-term strategy. The company, at an average price of $75,979 per BTC, invested a total of $2.13 billion, successfully acquiring 22,305 BTC.

This move was not an isolated event. Just in January 2026, Strategy’s total Bitcoin purchases exceeded 37,000 BTC, demonstrating its unwavering bullish conviction. To date, its holdings of 709,715 BTC are valued at over $63 billion, generating nearly $10 billion in unrealized gains. This behavior is widely regarded as a typical example of institutional investors “accumulating on dips” in volatile markets.

Market Reaction: A temporary divergence between price and capital flow

A phenomenon that confuses some investors is that, despite such massive institutional capital inflows, Bitcoin’s price did not immediately surge; instead, it recently dipped below the $89,000 mark. According to Gate market data, as of January 22, 2026, Bitcoin (BTC) was priced at $89,917.8, still recording a -6.59% decline over the past 7 days.

This “big buy yet price drops” scenario reveals the complexity of the digital currency market. It often points to several possibilities:

• Different sources of selling pressure: While institutions are buying, there may be selling pressure from short-term profit-taking, leverage liquidations, or other large holders.
• Market sentiment lag: Institutional actions often reflect long-term strategies, and their impact takes time to permeate broader market sentiment and retail capital flows.
• Macro factors suppressing prices: Broader macroeconomic indicators, such as interest rate expectations or the US dollar trend, may dominate asset prices in the short term.

In-depth analysis: Why does Strategy keep “buying more on dips”?

Strategy’s behavior is not mere speculation; it is backed by a clear corporate treasury strategy:

• Long-term assets against inflation: The management has repeatedly stated that they view Bitcoin as a superior long-term store of value compared to cash, used to hedge fiat inflation and currency devaluation risks.
• Faith-driven investment discipline: Strategy has institutionalized and systematized its Bitcoin purchases, not relying solely on short-term price movements but based on a firm belief in Bitcoin’s long-term network value growth.
• Positive capital market cycle: By raising funds through bonds or equity to buy Bitcoin, its stock price is highly correlated with Bitcoin’s price performance, forming a strategic loop. Although the recent buy caused its stock to drop 6-7% in the short term, in the long run, the growth of Bitcoin holdings provides direct digital asset exposure for its shareholders.

Current market overview: Insights from Gate data

When analyzing such major events, integrating real-time, comprehensive market data is crucial. As of January 22, 2026, the latest Bitcoin core data from Gate provides an accurate snapshot of the current market:

• Price and volatility: Bitcoin’s current price is $89,917.8, with a 24-hour high of $90,574.5 and a low of $87,256.2, indicating a consolidation after the correction. The all-time high remains at $126,080.
• Market size and activity: Bitcoin’s market cap remains high at $1.79T, holding 56.36% of the entire crypto market, maintaining its leading position. The 24-hour trading volume is $1.35B, showing liquidity remains robust.
• Supply and scarcity: Circulating supply is 19.97M BTC, very close to the maximum supply cap of 21M, with scarcity narratives reinforced by halvings and institutional accumulation.
• Recent performance: Despite a -6.59% decline over the past week, Bitcoin has gained +1.77% over the past 30 days. Over a one-year horizon, it has adjusted -15.07%, providing important context for long-term investors.

Market outlook: Opportunities amid volatility and long-term narratives

Strategy’s large-scale purchase injects a strong “long-term conviction” into the market. For retail investors, this signals:

• Institutional demand remains solid: The trend of large listed companies holding Bitcoin as a balance sheet asset has not reversed due to price fluctuations.
• Price discovery is complex: Short-term prices are influenced by multiple factors, but whale accumulation may be building energy for the next rally.
• Focus on value, not noise: Amid volatility, paying attention to Bitcoin’s network fundamentals (hash rate, adoption, regulatory clarity) is more important than daily price swings.

Based on historical data and modeling, some long-term forecasts suggest Bitcoin’s volatility range may expand. Analysts indicate that in 2026, the average price could be around $89,963.3, with a wide fluctuation between $68,372.1 and $134,045.31. Longer-term, by 2031, some believe the price could reach $239,667.61, implying a potential change of over +151.00%. It’s important to emphasize that all price predictions carry high uncertainty, influenced by future macroeconomic conditions, technological developments, and regulatory policies.

Conclusion

Strategy’s move to buy 22,305 BTC during a price dip once again confirms the investment adage “Be greedy when others are fearful” in the crypto space. For users trading and investing on Gate, such events offer an excellent window into market signals: true market insights are often hidden beneath surface price fluctuations. As digital assets increasingly become an integral part of global asset allocation, understanding and rationally analyzing institutional strategies help us make clearer, more long-term decisions amid complex market information. The market is a voting machine in the short term, a weighing machine in the long term, and Strategy is voting with real capital for Bitcoin’s long-term weight.