Where is the Bitcoin price headed with the threat of $2.97 billion selling pressure on BTC
- Bitcoin price fell for five days in a row; analysts predict a continuation of the asset’s downward trend.
- MicroStrategy, the largest publicly traded Bitcoin whale, took a non-cash digital asset write-down of $917.8 million on its BTC holdings in Q2 2022.
- Crypto Twitter is speculating about a sale of MicroStrategy’s Bitcoin holdings as a new leader is named CEO, with Michael Saylor stepping down.
MicroStrategy (MSTR) took a non-cash digital asset write-down of $917.8 million on its Bitcoin holdings in Q2 2022. Michael Saylor, a Bitcoin whale, stepped down as CEO of the publicly traded firm and assumed the role of executive chairman. Analysts fear that the company will follow in Tesla’s footsteps.
Also read: Why Bitcoin, Ethereum market activity reveals looming threat of maximum pain scenario
Bitcoin price vacillates in narrow range amid MicroStrategy uncertainty
Bitcoin holders are uncertain where BTC is headed, as the asset’s price vacillates in a narrow range after five consecutive days of decline. Bitcoin’s largest publicly traded whale, MicroStrategy, recently took a non-cash digital asset write-down of $917.8 million on its Q2 2022 Bitcoin holdings.
Interestingly enough, Michael Saylor resigned as MicroStrategy’s CEO and moved to the role of executive chairman. The Bitcoin Maximist describes this move as an attempt to shift focus to Bitcoin acquisitions and the firm’s holdings. Phuong Le, MicroStrategy’s president, replaced Saylor as CEO.
Since Tesla, another leading company with Bitcoin on its balance sheet, sold almost 75% of its Bitcoin holdings to raise money, analysts are considering the likelihood of MicroStrategy’s BTC sale. MicroStrategy has approximately 129,699 BTC, worth approximately $2.97 billion.
If MicroStrategy starts selling its Bitcoin, BTC may face increasing selling pressure as the number of coins in circulation increases by close to 1%.
It is important to note that MicroStrategy has not announced a Bitcoin sale yet; however, analysts are speculating about the impact of a potential drop in the firm’s BTC holdings.
Adriano Feria, a cryptanalyst, believes MicroStrategy will follow in Tesla’s footsteps and it is only a matter of time before the firm sheds its BTC holdings.
So, @saylor has stepped down as MSTR’s managing director.
Why did it happen and what does it mean? $BTC?He didn’t resign just because he bought $BTC. He opened heavily leveraged positions and then became a piece of shit $BTC cheerleaders with idiotic stories that don’t appeal to
1/3— Adriano FΞRIA (@AdrianoFeria) 2 August 2022
If the Bitcoin price continues to decline, Andrew Kang, CFO of MicroStrategy, confirmed it 85,000 unleveraged BTC is available to meet security requirements in the event of volatility. The company bought Bitcoin at an average price of $30,664 per BTC; therefore, it has an unrealized loss of almost $8,000 on every BTC it has.
Why MicroStrategy’s Next Move Matters to Bitcoin Holders?
MicroStrategy is a publicly traded Bitcoin whale, with nearly $3 billion in BTC. Therefore, Bitcoin holders and traders are very interested in Michael Saylor’s next move and are watching closely to see if MicroStrategy will continue to buy BTC in line with “Buy and HODL Strategy.”
Saylor is a Bitcoin maximalist and influencer credited with popularizing keeping Bbitcoin on the company’s balance sheet. While MicroStrategy’s bet on Bitcoin has gone awry in light of the BTC price decline, the company continues to hold an inventory of 129,699 BTC.
@Pentosh1, a leading cryptoanalyst, claims that the Bitcoin price must stay above $22,000 or the asset risks a massive price drop.
BTC-USD exchange rate chart
FXStreet analysts have evaluated the Bitcoin price trend and identified an opportunity to short the asset. For key price levels and more information on Bitcoin’s next move, watch the video below:
