Bitcoin’s price has surged past $60,000, sparking renewed interest and speculation among Bitcoin fans. In this context, MicroStrategy Chairman and Co-Founder Michael Saylor made a universally apt observation: “Bitcoin is the “A bridge between chaos and hope.”
The fact that Saylor tweeted this shows how seriously he takes the possibility that Bitcoin can 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 beacon in a stormy financial sea, Bitcoin has soared to new heights in a world where economic waves vary wildly. Yet the joy has been fleeting. A perfect storm has arisen from Germany’s exit from digital gold, the likely rebirth of Mount Gox, and the lingering shadow of U.S. interest rates. Once a sturdy ship, these turbulent forces have blown Bitcoin off course and sent investors’ compasses flying in all directions.
Despite all these challenges, Bitcoin has shown remarkable perseverance. Bitcoin prices fell sharply this week on concerns about massive withdrawals from U.S. exchange-traded funds (ETFs). But the market was encouraged by the emergence of dip buyers.
When Bitcoin is rallying, it is essential to pay close attention to important resistance and support levels. The strong support level at $57,670 helped crypto researcher Ali Martinez identify resistance around $61,340 and $64,620.
Martinez noted that Bitcoin needs to close above its 200-day simple moving average (SMA) at $59,207 if we are to confirm continued price action. In addition to overcoming weekly losses, Bitcoin recently gained 5%, trading at $60,272.
Bitcoin’s recent rally reflects this outlook. It gained 3.7% in the last day and peaked 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’s Bitcoin Strategy
Michael Saylor’s remarks coincide with a period when his company, MicroStrategy, has been advancing its invest in bitcoin approach remarkably.
MicroStrategy purchased more than 214,400 bitcoins during 2020, worth nearly $13.5 billion at current prices. The company spent a total of $7.53 billion on these transactions; each coin cost an average of $35,160.
Since MicroStrategy owns more than one percent of all Bitcoins that will ever exist, it is the largest corporate Bitcoin holder.
MicroStrategy’s aggressive bitcoin buying strategy has proven relatively successful. Since the beginning of the year, the company’s stock price has more than doubled and is currently riding high on bitcoin’s gains, reaching record highs of $1,290.
However, a number of analysts have expressed skepticism about the premium MicroStrategy is demanding over the price of Bitcoin, questioning why investors should hold onto the stock when ETFs allow them to buy shares directly.
Featured image from Vecteezy, chart from TradingView
