The bitcoin (BTC) price is choosing to go its own way, falling by 1.2% today while the stock market is finally rallying. Bitcoin has been taking its cues from the economy, which has been mired in tariff-related headwinds. Today’s news that there could be trade war relief up ahead has unleashed a buying spree in stocks but failed to ignite the same type of bullish response in the cryptocurrency market. Big investors are not deterred and are touting the digital asset’s potential.
Key Points
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The bitcoin price remains stuck below the key $80,000 level.
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Big investors aren’t worried and are touting bitcoin as the market hero.
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Bitcoin Bulls
MicroStrategy is a massive owner of BTC, holding 528,125 bitcoins on its balance sheet. When the bitcoin price is up, this makes the balance sheet stronger, but when the bitcoin price is down, it makes it weaker. MicroStrategy paid an average of $67,458 per BTC, and the bitcoin price is currently hovering at around $78,349, a far cry from its high of over $100,000 per BTC.
MicroStrategy can generally be counted on by the cryptocurrency community for its bullish outlook on the bitcoin market. Therefore, any sign of hesitation could be viewed as a reason to worry. MicroStrategy in a recent U.S. SEC filing reminded regulators and investors alike just how dependent the company is on the bitcoin price, writing, “As bitcoin constitutes the vast bulk of assets on our balance sheet, if we are unable to secure equity or debt financing in a timely manner, on favorable terms, or at all, we may be required to sell bitcoin to satisfy these obligations.”
While MicroStrategy’s reminder to the world that it could be forced to sell BTC if push came to shove may not be the reason behind bitcoin’s declines of late, it is a stark reminder of just how volatile the bitcoin price can be.
On the flip side, Michael Saylor, who implemented the bullish BTC strategy at MicroStrategy, is as bullish as ever on the biggest cryptocurrency. He reportedly said that if investors knew what he knows about bitcoin, it would be worth $10 million by now.
Separately, Standard Chartered digital assets executive Geoffrey Kendrick reportedly believes bitcoin will rise to the occasion in the current economy, saying, “Bitcoin will become a hedge against tariff risks this time.”
Now What?
If there’s one thing that is certain about bitcoin is that it marches to the beat of its own drummer. So while there is plenty of bullish sentiment building, the bitcoin price remains stuck below the key $80,000 level for now. When and where it decides to break out of the current trading pattern remains to be seen. The good news is that bitcoin has a proven history of making double-digit percentage moves higher.
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