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MicroStrategy CEO Discusses Current Crypto Market Situation

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MicroStrategy, which has been actively buying Bitcoin since 2020, is incurring unrealized losses of more than a billion dollars amid the fall of the major cryptocurrency. Despite this, MicroStrategy CEO Michael Saylor continues to assure that even if the collapse continues, the company’s financial reserves will be fine. According to him, including the “grandiose” collapse of BTC down to $3,500 won’t hurt MicroStrategy because it still has funds to cover its loans to buy crypto. We’ll tell you more about the situation.

When will MicroStrategy sell bitcoins

Recall that MicroStrategy ranks first among publicly traded companies regarding the number of bitcoins on its balance sheet. According to Bitcoin Treasuries, the firm now has 129,218 BTC in its account, and it has not sold the crypto since it first invested in it. Now, MicroStrategy’s unrealized loss has grown to $1.3 billion, roughly two-thirds of the company’s capitalization.

Rumors intensified this week about the company’s potential default on a $205 million loan used to buy BTC. Specifically, a drop in the value of the coin below $21,000 would lead to a margin call, that is, the possible liquidation of the position. This would have happened had MicroStrategy not added capital to back up the loan.

BTC has fallen into the $20,000 zone today, but Sailor remains completely calm about it. He reacted to what’s happening with the following post on his Twitter account.

“When MicroStrategy adopted investing in Bitcoin as its primary strategy, it anticipated volatility and structured its balance sheet to continue to hold the coins during any crisis.”

That is, Michael makes it clear that, at least in theory, MicroStrategy has no plans to get rid of its own BTC holdings. Well, in case the market situation worsens, the company will have money to increase the collateral for the loan.

And now let’s talk more about the giant’s reserves. MicroStrategy has $205 million in debt, and it must set aside $410 million on its balance sheet to back it up. The company has about $2.8 billion worth of bitcoins – which it allegedly can also identify as a reserve for the loan. MicroStrategy is thus able to pay its obligations until the BTC price drops to $3,500.

The margin call for the firm is also allegedly “not a problem,” Sailor said. However, MicroStrategy’s stock is reflecting a very sorry state of affairs: in the past month alone, it has fallen by at least 26.5 percent. Will MicroStrategy sell its bitcoins? Sailor has stated very many times that this question is not even on the minds of the firm’s management, meaning it will not give up its cryptocurrency reserves.

MicroStrategy can wait out the current crypto winter and then continue to add to its own BTC reserves. Still, the company continues to run its core business and make money – in fact, just this money in the form of billions of dollars was spent to acquire bitcoins.

Again, if we believe the statements of head Michael Saylor, their goal in this case is not to make money on investments, but to be a major holder of bitcoins after the transition of the world to a new financial standard, the basis of which will be the cryptocurrency. So MicroStrategy’s actions will indeed match those statements.

Cryptocurrency

Dogecoin price could rally 20% in July with this bullish reversal pattern

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Dogecoin price could rally 20% in July with this bullish reversal pattern

Dogecoin (DOGE) looks ready to extend its rebound move despite the current crypto bear market.

DOGE’s price appears to have been painting a bump-and-run-reversal (BARR) bottom since May 11, a technical pattern that points to extended trend reversals in a bear market. It consists of three successful phases: Lead-In, Bump and Run.

DOGE/USD daily price chart featuring ‘BARR bottom’ pattern. Source: TradingView
DOGE/USD weekly price chart featuring 50-week EMA. Source: TradingView
DOGE/USD four-hour price chart featuring ‘rising wedge’ setup. Source: TradingView

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Cryptocurrency

3 charts showing this Bitcoin price drop is unlike summer 2021

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3 charts showing this Bitcoin price drop is unlike summer 2021

Bitcoin (BTC) bear markets come in many shapes and sizes, but this one has given many reason to panic.

BTC has been described as facing “a bear of historic proportions” in 2022, but just one year ago, a similar feeling of doom swept crypto markets as Bitcoin saw a 50% drawdown in weeks.

Bitcoin estimated hash rate chart (screenshot). Source: MiningPoolStats
Bitcoin active addresses chart. Source: CryptoQuant
Bitcoin exchange reserves chart. Source: CryptoQuant

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FTM Begins to Retest Previous Highs As Correction May Be Over

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FTM Begins to Retest Previous Highs As Correction May Be Over

  • Fantom (FTM) seems to be retesting previous highs.
  • FTM is currently down 1.97% and is trading at $0.2845.
  • FTM could look to target $0.3501 should the mini upwards move continue for FTM.

Fantom (FTM) seems to be “retesting previous highs”, according to Michael van de Poppe. This comes as there has been a mini relief rally in the crypto market.

This does not necessarily mean that FTM has established its bottom yet, so traders should still tread with caution.

Fantom / TetherUS 2h (Source: Binance).

At the moment, FTM is one of the top 100 cryptos on CoinMarketCap’s list of most valuable cryptocurrencies in terms of market cap. FTM occupies the 59th position and this places FTM behind The Graph (GRT) in the 58th position and in front of Quant (QNT) in the 60th position.

FTM is currently down 1.97% and is trading at $0.2845 after reaching a high of $0.2947 over the last day. This price translates to about 0.00001361 BTC and 0.0002356 ETH. Things look a bit better for FTM over the larger time frames as the crypto saw a 7.89% increase in price over the last seven days.

FTM now has a market cap that stands at $722,730,787 and when looking at FTM’s 24-hour trading volume, the crypto stands at $166,580,326. This number is down 12.82% over the last day.

Fantom / TetherUS 1W (Source: CoinMarketCap)

When looking at the weekly chart for FTM/USDT, the last two weeks have closed with the FTM price higher than it was at the beginning of the week. It now looks like the current week will also end on a positive note. FTM can now look to target $0.3501 should the mini upwards move continue for FTM. This is a key level because it is also the last price that FTM fell from on the weekly chart.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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