CEO Warns Bitcoin Must Drop To $16,500 To Trigger Collapse
MicroStrategy, a business intelligence company co-founded by Bitcoin bull Michael Saylor, has significantly stepped up its Bitcoin acquisition strategy and now holds more than 400,000 Bitcoins.
However, concerns about the company’s financial stability relative to the price of Bitcoin have emerged, particularly from CryptoQuant CEO Ki Young Ju. Ju warned that while MicroStrategy faces the prospect Bankruptcy Not impossible, but it would require something as unlikely as an asteroid hitting Earth.
MicroStrategy’s financial risk if Bitcoin price floor remains at $30,000
in the most recent postal Ju elaborated on the matter on He pointed out:
MicroStrategy’s debt is $7 billion, while its Bitcoin holdings are worth $46 billion. Based on Bitcoin alone, the liquidation price is approximately $16,500. The bottom of the previous cycle was $16,000. Talking about a drop to this level now is as impossible as predicting a drop to $3,000 when Bitcoin was at $60,000.
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Against the backdrop of current price action, CryptoQuant famous Short liquidations totaling approximately $151 million in the past 12 hours pushed BTC prices to surge to a new all-time high above $108,000 on Tuesday,
The company revealed that the Bitcoin-to-gold ratio also reached an all-time high during this surge, cementing Bitcoin’s reputation as “digital gold” and affirming it as the preferred store of value compared to traditional gold assets role.
Additionally, MicroStrategy’s recent inclusion in the Nasdaq 100 Index has also boosted sentiment. Thaler hints at further Bitcoin purchases, even spot price Over $100,000.
CryptoQuant claims that this inclusion could result in passive inflows into MicroStrategy stock, providing the company with additional opportunities capital for its Bitcoin acquisition.
Buying Bitcoin for the Sixth Consecutive Week
Thaler point out Microstrategy bought the market-leading cryptocurrency for the sixth consecutive week on Monday. The transaction adds to the company’s massive Bitcoin portfolio, which now stands at 439,000 BTC, acquired at an average price of $61,725 per Bitcoin, for a price of approximately $27.1 billion.
Additionally, Saylor revealed that the company’s Bitcoin holdings are generating significant gains, with quarter-to-date (QTD) growth of 46.4% and year-to-date (YTD) growth of 72.4%.
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CryptoQuant also noted that this week’s central bank meeting appears to be secondary to market sentiment surrounding Bitcoin. While that remains unlikely, the “extremely dovish stance” of the Federal Reserve and Chairman Jerome Powell could provide the necessary support. momentum BTC gains further.
At the time of writing, BTC is trading at $104,140, down 2.6% in 24 hours but still up 6.5% for the week.
Featured images from DALL-E, charts from TradingView.com
