Michael Saylor remains confident on Bitcoin recovery despite market slump
- Bitcoin price takes a hit, but Michael Saylor confident BTC holdings can cover potential margin calls on BTC-backed loans.
- MSTR has lost 24% of its value in May, and Bitcoin price witnessed a massive drop, 17% losses over the past week.
- Analysts remain bullish on long-term Bitcoin price prediction, forecasting $200,000 within months.
MicroStrategy CEO and Bitcoin proponent Michael Saylor is bullish on a Bitcoin price recovery. Saylor announced to his investors that the current BTC holdings of the company could cover margin calls on BTC-backed loans, if the price drops below $3,562, a new collateral will be provided.
Bitcoin price recovery within months, predict analysts
Bitcoin price has witnessed a sharp decline recently and a market-wide bloodbath in crypto, but despite this, analysts and proponents like Michael Saylor of MicroStrategy continue to remain bullish. Saylor assured his 2.4 million followers on Twitter that MicroStrategy has a $205 million term loan and maintains $410 million as collateral.
The firm can pledge 115,109 Bitcoin; if the price of BTC drops below $3,562, MicroStrategy could post alternative collateral.
MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx
— Michael Saylor⚡️ (@saylor) May 10, 2022
Saylor believes the Bitcoin price could recover from the recent bloodbath, and MicroStrategy’s current Bitcoin holdings can cover margin calls on their BTC term loan. MicroStrategy’s Q1 2022 Financial Results presentation reveals the critical details of the first BTC term loan.
First Bitcoin Backed Term Loan
Analysts have evaluated the Bitcoin price trend and predicted a recovery and upcoming trend reversal in BTC. Gert van Lagen, a crypto analyst and trader, used the Elliot wave channeling method to predict $200,000 Bitcoin within months.
The analyst argues Bitcoin price is currently in a corrective 4th wave but could witness a trend reversal and break out into a massive rally – its 5th wave – targeting a new all-time high of $200,000.
$BTC [1W]: #Elliottwave channeling method shows 200k+ is possible within months.
— Gert van Lagen (@GertvanLagen) May 10, 2022
✅Macro 3-4 retraced to the terminus of the 3-4 wave within Macro 2-3 wave (dashed line)
✅1-2 SHARP
✅3-4 FLAT
source: Elliott Wave Principle Key to Market Behavior by Frost and Prechter.#BTC pic.twitter.com/ypNCvUbtDc
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
