HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

The Risk Level Of Bitcoin’s Dependency On MicroStrategy Is Out The Roof

Bitcoin 2021/07/20 18:36 by Olivia Brooke
The Risk Level Of Bitcoin’s Dependency On Microstrategy Is Out The Roof

Microstrategy first stormed the Bitcoin market in August of 2020, when it made a purchase of 21,454 BTC at a total aggregate purchase price of $250 million.

The market was thrilled to have the software intelligence company make a move on Bitcoin, and the excited chants increased when MicroStrategy followed up that purchase with a 16,796 BTC buy for a price of $175 million in September of the same year.

MicroStrategy and its run with Bitcoin

The market received the news as the beginning of the mass adoption of Bitcoin from some of the biggest institutions. The year would see the likes of Tesla and a handful of other leading institutions secure billions or millions of dollars worth of Bitcoin.

A retraction in that decision would soon follow, as different fundamental factors cause Bitcoin to lose stamina. But throughout this time, MicroStrategy would stay locked in, all thanks to its CEO Michael Saylor, who till this day is championing Bitcoin adoption in the traditional institutional industry.

Microstrategy is relevant for propelling Bitcoin adoption, but the dangers remain present

MicroStrategy’s dedication to Bitcoin adoption despite the volatility of the market is certainly commendable. In fact, one of the fastest ways to increase adoption for Bitcoin is by holding long-term, and with the company boasting over 100,000 BTC in its stash, it is clear that the company is here to stay (at least for now).

If and when this acquisition pays off, which will largely be realized in the long term, as the price of Bitcoin is expected to surge significantly, many institutions could pour into the market.

On the other hand, the market has witnessed the effects of institutions backpedaling on their decision to adopt Bitcoin. Michael Saylor being a strong figure in the Bitcoin community significantly heightens his influence in the market. If at any point the Bitcoin evangelist decides to exit the market, and have a change of heart in the same way that Nassim Taleb did every recently, the market could almost certainly take a hit.

Unlike retail adoption, the institutional investment carries a lot of weight for their ability to sway their counterparts. Many times when a decision to exit the market is made, other companies have the tendency to take steps back, while questioning the possible reason behind their counterparts’ decision.

0 Like(s)



You should also read...

Bitcoin 22/04/20 12:05 by Joseph Young
Bitcoin Bottomed Every Time GBTC Premium Plunged to New Lows; It’s Done it Again
At a macro level, the Bitcoin price bottomed every time the premium of Grayscale Bitcoin Trust (GBTC) fell substantially to a local low. After showing a 30 percent premium in March, GBTC markups fell ...
Read More
Bitcoin 16/09/20 13:58 by Samuel Wan
Grayscale CEO Quips About Bitcoin Buying Race With MicroStrategy
Michael Saylor, the Founder of MicroStrategy, said, so far, he has spent a total of $425 million buying Bitcoin. In a recent tweet, Saylor mentioned his firm had just purchased approximately 17k BTC. ...
Read More
Bitcoin 21/12/20 17:00 by Cole Petersen
MicroStrategy Recently Added $650m to Bitcoin Holdings — Boosting BTC Strength
MicroStrategy has become one of the biggest forces of constant buy pressure on Bitcoin, being an impetus for it seeing serious gains as of late The cryptocurrency’s price action may have been b...
Read More
Bitcoin 04/06/21 14:59 by NewsBTC
Big Bitcoin Investors – Who They Are: In Tesla’s Footsteps
A couple of years ago, large companies considered it a good form to throw stones at the crypto industry, with Bitcoin and other popular cryptocurrencies coming under heavy criticism. Today, many marke...
Read More
Bitcoin 17/06/21 14:21 by Mr Oak
MicroStrategy Has Been On A Relentless Bitcoin Buying Spree, But Are They Really On The Right Track?
Business Intelligence software firm MicroStrategy has announced plans to purchase even more Bitcoin, a move that has brought the firm under the radar of many crypto analysts as the firm’s Bitcoin b...
Read More