Where is Bitcoin price headed with threat of $2.97 billion selling pressure on BTC
- Bitcoin price declined for five consecutive days; analysts predict a continuation of the asset's downtrend.
- MicroStrategy, the largest publicly traded Bitcoin whale, took a non-cash digital asset impairment charge of $917.8 million on its BTC holdings in Q2 2022.
- Crypto Twitter is speculating a sale of MicroStrategy's Bitcoin holdings as a new executive is named CEO, and Michael Saylor resigned.
MicroStrategy (MSTR) took a non-cash digital asset impairment of $917.8 million on its Bitcoin holdings in Q2 of 2022. Michael Saylor, a Bitcoin whale, resigned as the publicly traded firm's CEO and took on the executive chairman role. Analysts fear the firm will follow in the footsteps of Tesla.
Also read: Why Bitcoin, Ethereum market activity reveals looming threat of maximum pain scenario
Bitcoin price wavers in a narrow range amidst MicroStrategy's uncertainty
Bitcoin holders are uncertain where BTC is headed next, as the asset's price wavers in a narrow range after five consecutive days of decline. Bitcoin's largest publicly traded whale, MicroStrategy, recently took a non-cash digital asset impairment charge of $917.8 million on its Bitcoin holdings in Q2 2022.
Interestingly, Michael Saylor resigned from his post as MicroStrategy's CEO and moved to the executive chairman role. The Bitcoin maximalist describes this move as an attempt to shift focus to Bitcoin acquisition and the firm's holdings. Phuong Le, MicroStrategy's president, replaced Saylor as CEO.
Since Tesla, another leading company with Bitcoin on its balance sheet, sold nearly 75% of its Bitcoin holdings to raise cash, analysts are evaluating the likelihood of MicroStrategy's BTC sale. MicroStrategy holds roughly 129,699 BTC, worth approximately $2.97 billion.
If MicroStrategy starts selling its Bitcoin, BTC could face mounting selling pressure as the number of coins in circulation increases by close to 1%.
It is important to note that MicroStrategy has not announced a Bitcoin sale yet; however, analysts are speculating about the impact of a potential drop in the firm's BTC holdings.
Adriano Feria, a crypto analyst, believes MicroStrategy will follow in Tesla's footsteps, and it is a matter of time before the firm sheds its BTC holdings.
So, @saylor has stepped down as MSTR's CEO.
— Adriano FΞRIA (@AdrianoFeria) August 2, 2022
Why did it happen, and what does that mean for $BTC?
He didn't step down just because he bought $BTC. He opened heavily leveraged positions and then became a looney $BTC cheerleader with idiotic narratives that do not appeal to
1/3
If Bitcoin price continues to decline, Andrew Kang, CFO of MicroStrategy, confirmed that 85,000 unpledged BTC are available to meet collateral requirements in the event of volatility. The company acquired Bitcoin at an average cost of $30,664 per BTC; therefore, it has an unrealized loss of nearly $8,000 on each BTC that it holds.
Why MicroStrategy's next move matters to Bitcoin holders?
MicroStrategy is a publicly traded Bitcoin whale, holding nearly $3 billion in BTC. Therefore, Bitcoin holders and traders are keenly interested in Michael Saylor's next move and are watching closely to see if MicroStrategy will continue buying BTC in line with its "Buy and HODL strategy."
Saylor is a Bitcoin maximalist and influencer credited for popularizing holding Bbitcoin on company balance sheets. While MicroStrategy's bet on Bitcoin has gone awry in light of the BTC price decline, the company continues to hold a stockpile of 129,699 BTC.
@Pentosh1, a leading crypto analyst, argues that Bitcoin price must hold above $22,000, or the asset is at risk of a massive price drop.
BTC-USD price chart
FXStreet analysts have evaluated the Bitcoin price trend and identified an opportunity to short the asset. For key price levels and more information on Bitcoin's next move, watch the video below:
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.
