The price of Bitcoin has surpassed $60,000, sparking renewed interest and speculation among bitcoin fans. In this context, MicroStrategy chairman and co-founder Michael Saylor remarked something universally relevant: “Bitcoin is the bridge from chaos to hope.”
The fact that Saylor tweeted this shows how seriously he takes the possibility that Bitcoin may protect investors from economic uncertainty.
#Bitcoin is the bridge from chaos to hope.pic.twitter.com/tTXPU4iXZT
— Michael Saylor (@saylor) July 13, 2024
Navigating Economic Uncertainty
A digital lighthouse in a stormy financial sea, Bitcoin has reached new heights in a world where economic waves vary drastically. Still, the pleasure was fleeting. A perfect storm results from Germany’s exit from digital gold, Mount Gox’s likely rebirth, and the residual US interest rate shadow. Once a solid ship, these turbulent forces have pushed Bitcoin off course and sent investors’ compasses flying wildly.
Against all these challenges, Bitcoin has shown a remarkable perseverance. Bitcoin prices fell suddenly this week due to concerns over large withdrawals from US exchange-traded funds (ETFs). But the market was given encouragement when dip buyers appeared.
When Bitcoin recovers, it is vital to pay close attention to important levels of resistance and support. Strong support level of $57,670 has helped crypto researcher Ali Martinez identify resistance around $61,340 and $64,620.
Martinez pointed out that Bitcoin has to close above its 200-day Simple Moving Average (SMA) at $59,207 if we are to confirm the continuous price ascent. Apart from overcoming weekly losses, Bitcoin has recently increased by 5%, trading at $60,272.
The recent rise of Bitcoin reflects this perspective. It grew 3.7% on the last day and peaked at $60,431. Should it close the day in the green, it will be the third day in a succession of gains, inspiring traders and investors.
MicroStrategy’s Bitcoin Strategy
Michael Saylor’s remarks coincide with a period of time when his company, MicroStrategy, has advanced its bitcoin investing approach remarkably.
MicroStrategy purchased over 214,400 Bitcoin throughout the course of 2020, valued at almost $13.5 billion at current price. For these transactions, the company spent a total of $7.53 billion; each coin cost $35,160 on average.
Since MicroStrategy holds more than one percent of all Bitcoin that will ever exist, it is the largest corporate Bitcoin holder.
MicroStrategy’s aggressive strategy of purchasing Bitcoin has proven to be reasonably effective. Since the start of the year, the company’s stock price has more than doubled and is currently above Bitcoin’s gains, reaching record highs of $1,290.
However, a number of analysts have expressed scepticism over the premium MicroStrategy demands in relation to Bitcoin’s price, questioning why investors ought to hold the stock when ETFs allow them to purchase shares directly.
Featured image from Vecteezy, chart from TradingView
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