Bitcoin is fighting to stay above $ 20,000 while Saylor is buying another $ 10 million
After sinking to a low of $ 19,939 early Wednesday morning, bitcoin (BTC-USD) is struggling to find support back above the $ 20,000 mark.
Today’s trading comes at the end of the painful last two months, where investors have seen the total market value of crypto shrink by 47%, from $ 2.1 trillion on May 1 to $ 891 billion on Wednesday afternoon.
This move in bitcoin also comes as mentioned bitcoin bull Michael Saylor said on Wednesday that his company, MicroStrategy (MSTR), bought another 9.9 million dollars worth of bitcoin between May 3 and June 28 at an average price of 20,817 dollars. Saylor’s latest acquisition brings the company’s total bitcoin holdings to $ 2.5 billion based on bitcoin’s current value.
The company has spent about $ 3.98 billion on buying bitcoin, acquiring the cryptocurrency at an average purchase price of about $ 30,664 per bitcoin, including fees and expenses, according to the latest filing with the SEC.
“If you look at four years and base your decision-making on fundamental factors, I think you will conclude that bitcoin is the right choice for a government reserve asset,” Saylor said in an interview with Yahoo Finance last Friday, adding that 2022 is about to take shape. up to be the worst year in the last five decades for most risk assets.
Following the $ 50 billion collapse of Terra and its tokens LUNA and UST, a number of crypto companies are going bankrupt financially, including the crypto hedge fund Three Arrows Capital, which reportedly went into liquidation on Wednesday. These liquidations have dampened sentiment throughout the room.
Down 58% since the start of 2022, some of bitcoin’s strongest critics have articulated its inability to fulfill the role that proponents claim it serves, such as an inflation hedge or stockpile.
More recently, Brent Donnelly, a global macro trader and president of Spectra Markets, suggested that the world’s largest cryptocurrency acts as a hedge not against inflation, but instead of loose monetary and fiscal policy.
“Bitcoin is younger than any of my two sons. This is [bitcoin’s] first cycle that has institutional adoption, we should not be 100% sure that the next cycle will look like this. “Even the long-standing and well-known relationship between the Fed’s policy and equities is somewhat unstable,” Donnelly noted.
David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.
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