Yahoo Finance Big Corporate Bitcoin Buyers Eye Critical BTC Price Level
Bitcoin prices have started to consolidate over the past few days following a fall of 22.3% so far this year. At the time of writing, BTC was changing hands for $36,135 in a rare gain of 1.7% over the past 24 hours.
The asset fell to a six-month low of around $33,500 in late trading on Monday but has recovered marginally since.
Bitcoin prices are now approaching a critical juncture following the formation of a large ‘double top’ chart pattern. A break below the psychological $30K support barrier, where the market bounced in July 2021, could be a cause of concern for some of the big corporate investors.
Bukele, Saylor and Dorsey all in
Elon probably sweating a lil pic.twitter.com/hH9fm49PVN
— db (@tier10k) January 24, 2022
Tesla, MicroStrategy BTC Profits Evaporating
Michael Saylor’s software firm MicroStrategy is the largest corporate holder of Bitcoin according to BitcoinTreasuries. The business intelligence company holds 124,391 BTC worth an estimated $4.5 billion at current prices.
MicroStrategy (MSTR) made its first BTC purchase in August 2020 when the asset was trading at around $11,500 but the firm has made several additional purchases in 2020 and throughout 2021. The dollar cost average for all of its BTC is around $3.7 billion according to BitcoinTreasuries meaning that Saylor’s firm is still up around 18%.
Speaking to Bloomberg last week, Saylor confirmed the company’s intentions to hodl: “Never. No. We’re not sellers,” before adding “We’re only acquiring and holding bitcoin, right? That’s our strategy.”
Tesla (TSLA), which has seen stocks slump this week, is the second-largest corporate holder of Bitcoin with 43,200 coins worth around $1.56 billion. It got in around the same time last year when BTC was hovering at around $32K so profit margins there have pretty much evaporated and the firm is closing in on a breakeven point.
El Salvador will be at a loss now however the pro-crypto president remains resolute and also has no plans to sell. In fact, on Jan. 23, Nayib Bukele bought the dip adding a further 410 BTC to the nation’s treasury.
Market Approaching Critical Level
The next market move will be crucial for crypto. A bounce off previous support at $30K could see fresh momentum and investment. However, a fall below it is likely to result in a full-blown bear market that could last a couple of years.
All other crypto assets will follow in the shadow of Big Brother Bitcoin as they have done previously.
This article was originally posted on FX Empire
