MicroStrategy Against Selling Any Bitcoin Despite Bearish Persistence
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Despite trading down by 35% from its previous record high of $69K, Bitcoin (BTC) bull Michael Saylor, CEO of MicroStrategy, has asserted that his company has no plans of selling any bit of its $5 billion BTC holding anytime soon.
MicroStrategy’s stocks have become a safer avenue for many to get Bitcoin exposure without directly owning the asset due to the amount of BTC the firm holds on its balance sheet. When quizzed about selling, Saylor vehemently shut down talks that his company plans on taking any losses (or profits) from its investment in the crypto market.
The CEO asserted that the company is only acquiring and holding BTC without selling, popularly called “HODLing,” a strategy involving aggressively holding a crypto asset without selling notwithstanding the market condition of the day.
MicroStrategy became popular in the crypto scene in 2020 after it announced its cash management plan based on purchasing digital assets trading around $10K at the time.
At one point, MicroStrategy’s investment had yielded over 900% in unrealized profits. However, due to shoddy investment decisions, which included the use of borrowed funds for constant accumulation of coins, the company’s collateral income dropped significantly.
Regardless, MicroStrategy’s CEO remains firm in the belief that BTC is an unshakable inflation hedge and is suitable for stock buyback events. However, most industry experts do not share Saylor’s sentiment due to Bitcoin’s past performance.
Key Bitcoin Levels to Watch — January 20
BTC has managed to regain some upward traction on Thursday, as uncertainty remains the order of the day for the crypto market in 2022. The benchmark cryptocurrency has now veered away from the descending trendline from the $69K top and approaches the $43K level again. This mild bullish trajectory comes following a failure by sellers to breach the $41K support.
However, the cryptocurrency faces several technical barriers as it aims higher, starting with the 4-hour 50 SMA and the ascending tripwire near $43K. As always, I advise against placing any aggressive bets in BTC for the time being because of the prevailing market uncertainty.
Meanwhile, my resistance levels are at $43,000, $44,000, and $45,000, and my key support levels are at $42,000, $41,000, and $40,300.
Total Market Capitalization: $2 trillion
Bitcoin Market Capitalization: $803.2 billion
Bitcoin Dominance: 40.1%
Market Rank: #1
