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Unrealized profits of Strategy from Bitcoin holdings have fallen below $8 billion, putting increasing pressure on Michael Saylor's Bitcoin investment strategy. The cryptocurrency market is clearly struggling, and Bitcoin has failed to maintain its recent bullish momentum.
Since 2020, MicroStrategy — now known as Strategy — has been actively buying Bitcoin, steadily growing its holdings even during downturns. However, the company's profit margins have drastically decreased as a result of Bitcoin's current price of about $83,000. According to recent disclosures, some of its most recent acquisitions were made for more than $97,000, putting them at an immediate loss.
Although the company's dollar-cost averaging approach has held up well over time, its viability is called into question by the recent decline in the price of Bitcoin. Future purchases may become more cautious if the bearish trend persists because the unrealized gains may decrease even more.
Alex DovbnyaTechnically, it is still unclear how the price of Bitcoin will move. The 200-day moving average is serving as a crucial threshold as the asset is presently testing important support levels. If this level is broken, selling pressure may increase, and Bitcoin may enter a more severe correction phase.
Vladislav SopovThe long-term fundamentals of Bitcoin, according to bulls, are still solid, and institutional adoption is still rising. Bears, on the other hand, point to declining volume and a dearth of pressing factors that might raise the price in the near future.
Right now everyone is watching to see if Bitcoin can recover from higher resistance levels. A successful push above $90,000 might boost confidence, but if important supports are broken, there may be a protracted consolidation or more decline. Strategy's next course of action will probably rely on how well Bitcoin stabilizes and regains its bullish momentum.
Vladislav Sopov
Dan Burgin