Bitcoin is trading at $30,800. The flagship cryptocurrency is struggling to keep the $31,000 resistance, with pundits and analysts calling for bitcoin to drop to $20,000. Some are calling for a limit of as low as $10,000. Well, of course, the Bitcoin haters and detractors are calling for it to plummet to zero. It was only on April 20th that Bitcoin was trading for forty thousand dollars, but with rising interest rates, geopolitical turmoil, and economic instability worldwide, the sudden drop to $30,000 now makes the calls for $20,000 more believable. A twenty-thousand dollar bitcoin price is a far cry from the $68,991 from November of 2021, and it’s been reported that one of the biggest bulls and advocates of bitcoin, Michael Saylor, would be in trouble if bitcoin fell below $21k.
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First reported by fortune.com:
MicroStrategy started buying Bitcoin in August of 2020 when Bitcoin was trading in the $11,500 range. After its initial 250 million dollar acquisition of bitcoin, Microstrategy’s stock rose tremendously and Michael Saylor became a celebrity and a major voice in the bitcoin community. MicroStrategy has been on a buying spree ever since, buying Bitcoin as it rose and at various dips, according to SEC filings for the first quarter. MicroStrategy added another 215 million dollars worth of bitcoin at an average purchase price of $44,645 per coin in the first quarter, bringing its total holdings to 129,218 bitcoins acquired for 3.97 billion or $30,700 per coin. Microstrategy’s accumulation of bitcoin saw its stock price rise drastically in March of 2020. MicroStrategy was trading for about $100 a share. It eventually rose to $963.72 in February of 2021.
Microstrategy’s changing direction by adopting a treasury strategy to acquire bitcoin as the reserve on their balance sheet has changed the direction of Microstrategy, eventually leading Microstrategy to borrow millions from banks to add more of the cryptocurrency to Microstrategy’s balance sheet. Many doubters and haters of Michael Saylor and bitcoin thought this to be a bit of an aggressive move and risky as bitcoin is seen as a speculative asset that has seen 50+ corrections numerous times since the most recent downtrend of bitcoin to the 30k range. Many bitcoin and Michael haters are salivating at the prospect of Michael falling on his sword with bitcoin. While reports claim that $21k would do Saylor in for a margin call, Michael Saylor came forward to give clarity on the situation. Saylor tweeted out:
In response to the sudden drop in Bitcoin’s price, Saylor had some fun trolling with the meme of him serving McDonald’s fries, playing along with the ongoing joke of crypto investors having to get fast food jobs if the price of cryptocurrencies falls lower. Sailor tweeted out Monday morning:
All jokes aside, Bitcoin would need to fall all the way to $3,562 before the company would run out of enough of the crypto to pledge for that loan, but even at that point, MicroStrategy could post some other collateral. According to Saylor, theoretically, there’s almost no price low enough at which MicroStrategy would need to be a forced seller of bitcoin.
When Sailor took the stage in Bitcoin Miami 2022, he emphatically riled up the crowd, stating “never sell your bitcoin.” It looks like once again, a sailor is putting his money where his mouth is. What do you think of Sailor’s margin call? Can you see Sailor and Microstrategy ever selling any bitcoin?
[This article is a transcription of a video made by Only The SAVVY]
Original video: https://youtu.be/swdHevUSJWc ]