Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
Michael Saylor, CEO of MicroStrategy, borrowed money to buy Bitcoin. He has stated that he gets a margin call if Bitcoin tumbles to $21,000.
Margin call
Saylor tries to defuse fears
Pledge more assets
Amazing arrogance
Bitcoin weekly chart
Bitcoin chart courtesy of StockCharts.Com
Technically speaking, Bitcoin is on the tip of a major precipice. The next support level is somewhere in the $17,500 to $19,000 level.
That does not guarantee or imply Bitcoin will fall that low, but, this is a bear market and support levels tend to break.
Moreover, the fact that everyone knows where the pain level is, tends a bit to be self-fulfilling.
Thinking this through
Saylor says he will simply pledge more assets. Well that will do nothing but set an even lower pain level.
This can cascade spectacularly.
MSTR chart courtesy of StockCharts.Com, annotations by Mish
MSTR does it again
This time, MicroStrategy (MSTR) is trading like a speculative leveraged play on Bitcoin (because it is a speculative leveraged play on Bitcoin).
How many days before a margin call?
Stablecoin crash: Luna drops 86% in one day, Yellen seeks regulation
And in case you missed it, please see Stablecoin Crash: Luna Drops 86% in One Day, Yellen Seeks Regulation.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
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