Key Takeaways
- The cryptocurrency market is experiencing a significant downturn, with Bitcoin and other digital assets seeing substantial price drops.
- This “crypto bloodbath” hasn’t shaken Microstrategy’s Michael Saylor, who suggests buying Bitcoin.
- Saylor sees Bitcoin surpassing traditional assets like gold and outperforming the current bull market.
Amid selling pressure in the crypto market, Michael Saylor, chairman of MicroStrategy, makes a resolute proclamation regarding BTC: it’s an opportune moment to invest in the future of Bitcoin.
Presently, the cryptocurrency market is witnessing a sharp downturn, with Bitcoin and other prominent digital assets experiencing substantial declines in value. Termed the “crypto bloodbath,” this occurrence has rattled investor sentiment and sparked debates about the durability of the recent bullish trend.
Crypto Bloodbath
Currently, the cryptocurrency market is undergoing a significant downturn, marked by substantial price declines in Bitcoin and other major digital assets. This downturn has eroded investor confidence.
Against this backdrop, Bitcoin’s value plummeted to $65,000, a notable departure from its previous all-time high of over $73,000. While Bitcoin briefly dropped to $64,980, its lowest price since March 24, it recovered from these losses. At the time of writing (April 3 2024), BTC had experienced a 6.6% decrease in the preceding 24 hours, trading at $65,116.
Additionally, the upcoming Bitcoin halving event scheduled for April 2024, which will halve the bitcoin mining reward from 6.25 BTC to 3.125 BTC, is expected to reduce the supply of new Bitcoins. And it would potentially stimulate demand.
Bitcoin is rapidly approaching its fourth halving event, with less than 20 days remaining. OkLink reports the current countdown to the Bitcoin halving event stands at 18 days, with an estimated date of April 20. There are only 2,602 remaining blocks until this event occurs.
Saylor Says To Buy BTC
Saylor, a steadfast advocate for Bitcoin, made a statement that struck a chord with many in the cryptocurrency sphere. It reaffirmed his confidence in Bitcoin’s long-term prospects despite the ongoing market fluctuations.
In an X post, Saylor succinctly advised:”Bet on the future. BTC.” Saylor’s remarks are particularly significant given the current context, with Bitcoin‘s price experiencing a notable dip in the past 24 hours.
Just two days prior, the MicroStrategy executive demonstrated his support for the leading cryptocurrency by sharing an image of a clown alongside the caption: “Don’t be a fool, buy Bitcoin.”
In a recent interview , Michael Saylor expressed his belief that Bitcoin would soon surpass gold in performance. Saylor asserted that Bitcoin excelled as an asset in all respects, emphasizing its superiority over gold. He went as far as to suggest that Bitcoin could surpass traditional investments such as real estate and stocks.
Microstrategy Bets Big On Bitcoin
MicroStrategy, the largest public holder of Bitcoin, has once again made a significant investment in the cryptocurrency. After releasing an $800 million convertible offer, the company has added 9,245 BTC to its portfolio. However, the weakness in Bitcoin’s price has caused MicroStrategy stocks to trade in the red. Nonetheless, experts anticipate that the current bull cycle will peak by February 2025. Can MicroStrategy capitalize on this?
As said, on March 19, MicroStrategy announced the addition of 9,245 BTC to its portfolio. It spent around $623 million at an average price of approximately $67,382 per BTC. This acquisition increased MicroStrategy’s total Bitcoin holdings to 214,246, purchased at an average price of $35,160 per coin. This, therefore, means it holds about $7.53 billion worth of BTC.
The company is financing these investments using funds raised through convertible notes and excess cash reserves, after the announcement of an $800 million convertible offer.
To contextualize MicroStrategy’s Bitcoin investment, consider its current holdings. 214,246 BTC valued at about $13.59 billion, according to data from Bitcoin Treasuries. At the time of writing, the company has a market capitalization of $26.78 billion. This positions its investment at 1.8 times its net gain, representing 56.5% of the market cap.
MicroStrategy has established itself as a Bitcoin advocate to such an extent that the company’s market capitalization closely mirrors the trajectory of the cryptocurrency. While its stock faces pressure due to Bitcoin’s recent decline, the company should benefit from the anticipated peak in the cryptocurrency’s value.
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