Despite losing over $1 billion in Bitcoin in the current bear market, Michael Saylor’s faith is unwavering. While Bitcoin was in free fall on Tuesday, he said his firm was well prepared for such a situation. His firm, Microstrategy, revealed that it has made provisions for volatility before adopting a Bitcoin strategy.
Bitcoin, the best performing asset
Speaking to CNBC on Wednesday, Saylor said his firm is testing its Bitcoin strategy against all other alternatives. Michael Saylor stated that the firm’s Bitcoin strategy was made when Microstrategy retraced the Bitcoin decline in August 2020.
In fact, he highlighted why he thinks Bitcoin will outperform in the long run. Saylor thinks that in any time frame, be it two, five or ten years, BTC will be the best performing asset.
Microstrategy CEO also stated that the crossing point for keeping Bitcoin in profit is four years. He said that the four-year moving average of BTC averaged $21,685:
After four years of investing in Bitcoin, no one lost money. BTC’s four-year SMA is $21,685.
Michael Saylor’s strategy: Major entry point
Meanwhile, Bitcoin is currently trading in the same price range as the SMA that Saylor is talking about. BTC is trading at $20,569.12, down 8.53% in the last 24 hours, according to CoinMarketCap. When asked if there is a great buying opportunity now, Saylor replied “absolutely”. He explained this confidence as follows.
Bitcoin is backed by the world’s most powerful computer network. It goes beyond a nation-state attack or an institutional attack. It’s like no other in the world. This is the ideal entry point to enter Bitcoin.
Saylor also commented on the concerns about Bitcoin’s steep decline over the past few days. On discussing his firm’s possible margin call, he said:
On a multibillion-dollar balance sheet, we only have a $200 million loan to collateralize, and we’re now 10x more collateralized on that.
Microstrategy’s total Bitcoin capital is 129,918 BTC purchased at an average of $30,700. The firm is the largest institutional BTC holder after Tesla and the South American country El Salvador.
Whales attack Bitcoin
According to a Santiment tweet we quoted as Kriptokoin.com, Bitcoin has processed a total of 12,969 whale transactions in the last 24 hours. This is the largest amount observed on the network since May 2021. These numbers show strong interest among whales at current prices.
Bitcoin stock market entries jumped to three-and-a-half-year highs, marking further declines. In addition, analysts said that more pain will come for investors. In this regard, analyst of on-chain analytics platform CryptoQuant says:
In the next 670 days, BTC will capitulate in the next six months and hit the bottom of the cycle ($14-21k), then 28-40 for most of 2023 It will cut around $1,000 and it will be back to $40,000 by the next half.
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