MicroStrategy shares crashed in half in three weeks!

Bitcoin (BTC) price correction affects not only individual investors but also major players.

According to data dated March 5, the shares of MicroStrategy, the company with more than 91,000 BTC deposits, fell by half in just three weeks.

MicroStrategy continues to buy BTC

MicroStrategy’s shares hit $ 628 when the company announced that it purchased an additional 210 BTC for $ 10 million. The MSTR had risen to over $ 1,300 in February.

The volatility of MSTR stocks reflects fluctuations in bitcoin price.

Chart of $ MSTR (red) and BTC / USD (blue). Source: Tradingview

The fact that the company has added Bitcoin to its reserves since last August has had an effect that will completely change the MSTR shares. MSTR was trading just over $ 100 before the company started buying Bitcoins.

Hayes: “Bonds could attract Bitcoin investors”

On the other hand, the Bitcoin bull market has been disrupted in the short term due to macroeconomic factors.

Arthur Hayes, former CEO of the derivatives exchange BitMEX, said central bank policies could draw capital from cryptocurrencies entirely in some extreme cases.

Hayes said in a recent blog post that this is because the US Federal Reserve might choose to increase bond rates and put investors in a tough time.

Capital will be taken from Bitcoin and crypto, if global fiat liquidity can still generate significant returns with government bonds, the former CEO of BitMEX explained.

“The main goal is to maintain purchasing power and if this can be done through government bonds, the most liquid asset, liquidity will take the easy route.”

Anti-inflationary options chart by Arthur Hayes. Source: David Venturi / Twitter

Check Also

Over-the-counter trading volume skyrocketed along with bitcoin price

The skyrocketing over-the-counter trading volume indicates that institutional investors are buying Bitcoin (BTC) heavily this …

Leave a Reply

Your email address will not be published. Required fields are marked *