Bitcoin has surpassed $60,000, sparking renewed interest and speculation among Bitcoin enthusiasts. In this context, MicroStrategy CEO and co-founder Michael Saylor pointed out something of universal relevance: “Bitcoin is “A bridge from chaos to hope.”
The fact that Sailor tweeted like this shows how seriously he takes the possibility. Bitcoin It may protect investors from economic uncertainty.
#Bitcoin It is the bridge from chaos to hope.pic.twitter.com/tTXPU4iXZT
— Michael Saylor⚡️ (@saylor) July 13, 2024
Dealing with Economic Uncertainty
Bitcoin, a digital beacon in a stormy financial sea, has reached new heights in a world of wildly divergent economic waves. The joy, however, was fleeting. A perfect storm has been brewing from Germany’s exit from digital gold, the potential revival of Mt. Gox, and the lingering shadow of interest rates in the United States. These turbulent forces have pushed Bitcoin off course and sent investors’ compasses soaring.
In the face of all these challenges, Bitcoin has shown remarkable resilience. Bitcoin prices fell abruptly this week on concerns about large withdrawals from U.S. exchange-traded funds. But the market gained encouragement when buyers emerged at lower prices.
As Bitcoin recovers, it is important to pay close attention to important levels of resistance and support. The strong support level at $57,670 helped cryptocurrency researcher Ali Martinez identify resistance at $61,340 and $64,620.
Martinez noted that Bitcoin must close above its 200-day simple moving average at $59,207 if we are to confirm a sustained upward move. Apart from overcoming weekly losses, Bitcoin has recently gained 5%, trading at $60,272.
Bitcoin’s recent rally reflects this outlook. It rose 3.7% in the last day, peaking at $60,431. If it ends the day in the green, it will be the third consecutive day of gains, inspiring traders and investors.
MicroStrategy Bitcoin Strategy
Michael Saylor’s comments coincide with a period of time in which his company, MicroStrategy, has significantly evolved its approach to investing in Bitcoin.
MicroStrategy purchased over 214,400 bitcoins throughout 2020, worth about $13.5 billion at current prices. The company spent a total of $7.53 billion on these transactions; the average cost of each coin was $35,160.
Since MicroStrategy owns more than one percent of all bitcoins that will ever exist, it is the largest company holding bitcoins.
MicroStrategy’s aggressive Bitcoin buying strategy has proven reasonably effective. Since the start of the year, the company’s stock price has more than doubled and is now outpacing Bitcoin’s gains, hitting an all-time high of $1,290.
However, a number of analysts have expressed skepticism about the additional price MicroStrategy is asking for relative to the price of Bitcoin, questioning why investors would hold onto the stock when ETFs allow them to buy the shares directly.
Featured image by Vecteezy, chart by TradingView