MicroStrategy’s Michael Saylor Says HODL Bitcoin Despite Sub $50K Crash

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As an analyst with over two decades of experience in the financial market, I’ve seen my fair share of market volatility and crashes – from the dot-com bubble to the 2008 global financial crisis. However, the current crypto market turmoil, with Bitcoin dipping below $50,000, is a unique beast in its own right.

Despite the widespread fear and significant drop in Bitcoin‘s value below $50,000 in the cryptocurrency market, MicroStrategy Chairman Michael Saylor is backing up the crypto community by declaring his intention to hold onto his Bitcoins tightly, or in other words, he will not let go of them easily.

Michael Saylor Says HODL Bitcoin

Michael Saylor, in a recent tweet about X, stated that he still holds onto Bitcoin (BTC). Unwavering in his approach, the chairman of MicroStrategy remains committed to his Bitcoin investment plan, showing no hesitation even amidst this current market downturn. In the past day alone, Bitcoin’s total market value has dropped by over $200 billion, as rumors of a potential interest rate reduction by the Fed and renewed central bank intervention resurface.

HODL

— Michael Saylor (@saylor) August 5, 2024

As a crypto investor, I’ve noticed that for the first time since February, Bitcoin’s price is dipping below $50K and has even lost its trillion-dollar value. Simultaneously, the share price of MicroStrategy (NASDAQ: MSTR) plunged by 16% today, dropping to $1,213.77, marking a significant 27% loss for the week. It seems that other publicly traded companies in this sector are experiencing similar downfalls as the broader crypto market takes a hit.

Based on my extensive background in the cryptocurrency market and my personal experience with MicroStrategy’s aggressive Bitcoin (BTC) acquisition strategy, I find it quite intriguing to observe any future developments spearheaded by Michael Saylor. During last week’s Q2 results announcement, he mentioned that MicroStrategy plans to raise an additional $2 billion in cash for the sole purpose of purchasing more BTC. Given my familiarity with Saylor’s bold moves and his conviction in Bitcoin’s potential as a long-term store of value, I can only imagine the excitement and anticipation within the crypto community as we await his next steps.

Gold Outperforms BTC

As a seasoned investor with over two decades of experience under my belt, I strongly believe that the current economic climate calls for some strategic moves to secure one’s financial future. The recent 18% plunge in Bitcoin’s price has left many investors questioning its stability and value, but I’ve learned throughout my career that it’s essential not to put all your eggs in one basket.

As a researcher observing economic trends, I note that the Federal Reserve is expected to shift its policies, leading to an increase in the money supply yet again. This move could potentially lead to a dip in real interest rates and the value of the U.S. Dollar, while also fueling inflation. Meanwhile, Peter Schiff, a well-known critic, didn’t hesitate to point out Bitcoin’s volatility in his latest write-up.

As someone who has closely followed and invested in cryptocurrencies for several years now, I have come to realize that Bitcoin is not suitable as a reserve asset for any major government or central bank. Based on my personal experience, I have witnessed numerous instances of extreme volatility in the price of Bitcoin, which makes it an unstable and unreliable store of value. Moreover, during market downturns like this weekend’s crash, Bitcoin has often underperformed traditional assets, making it a poor hedge against economic uncertainty. In my opinion, a reserve asset must be readily sold when needed, but due to its limited liquidity compared to established financial instruments, Bitcoin is not easily sold in large quantities without causing significant price fluctuations. As such, I believe that governments and central banks would be taking undue risks by relying on Bitcoin as a reserve asset.

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2024-08-05 17:16