crypto for all

Bitcoin falls below $66,000 - Michael Saylor reacts

Mon 17 Jun 2024 ▪ 4 min of reading ▪ by Evans S.
Getting informed Event

The recent drop of Bitcoin below $66,000 has made many market participants react, but none have been as vocal as Michael Saylor. As co-founder of MicroStrategy and a strong advocate of Bitcoin, Saylor took this opportunity to remind the community of the importance of a long-term strategy.

Bitcoin bull run

Michael Saylor and the Bitcoin Philosophy

Michael Saylor, an iconic figure in the crypto world, was not deterred by the drop of Bitcoin below $66,000. On the contrary, he used this opportunity to reaffirm his conviction in Bitcoin’s long-term value.

Saylor shared his thoughts on social media, notably on Twitter (or X, as it is now called), stressing the importance of “thinking in Bitcoin.”

For Saylor, market volatility is not a surprise but rather an inherent characteristic of any emerging currency.

He advises BTC holders not to panic and to focus on the fundamentals of crypto. Volatility, according to him, is an integral part of the maturation process of Bitcoin as a global store of value.

By encouraging the community to “think in Bitcoin,” Saylor aims to highlight the importance of understanding BTC’s potential beyond its short-term price fluctuations.

This approach, though bold, is rooted in a thorough analysis of the economic dynamics and technological trends underlying the crypto market.

MicroStrategy’s Strategy: Buying During the Dip

Under Saylor’s leadership, MicroStrategy has adopted a decidedly pro-Bitcoin strategy. Since August 2020, the company has been accumulating bitcoins at a steady pace, becoming one of the largest institutional holders of the crypto. The recent drop in the price of bitcoin has only strengthened their determination.

Last week, MicroStrategy announced a convertible senior notes offering, aiming to raise $700 million. This money will primarily be used to buy more bitcoins and strengthen the company’s balance sheet. Initially, the goal was to raise $500 million. But investor interest was so strong that the offering was increased.

This massive fundraising is a testament to Saylor’s unwavering confidence in Bitcoin’s future. The notes will carry an annual interest rate of 2.25%, with semi-annual payments.

MicroStrategy also has the right to redeem these bonds for cash under certain conditions, demonstrating proactive financial management while betting on the future rise of bitcoin.

The Market Reacts: Whales and Volatility

The market’s reaction to the bitcoin drop has been, as expected, very volatile. Bitcoin “whales” took advantage of this dip to unload billions of dollars in BTC, further accentuating the price drop. Within a few days, bitcoin plunged to $65,180 before slightly recovering.

This extreme volatility has a dual effect. On the one hand, it creates buying opportunities for those who firmly believe in bitcoin’s long-term value, like Saylor and MicroStrategy. On the other hand, it can cause panic among less experienced investors or those who cannot withstand such fluctuations.

For savvy observers, this volatility is an opportunity to analyze market movements and adjust their strategies accordingly. Bitcoin-based ETFs, for example, have seen a massive inflow of funds, indicating that institutional investors still see potential in this crypto despite its recent jolts.

Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.

Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.