MicroStrategy and its chief honcho Michael Saylor have become synonymous with Bitcoin, which is responsible for setting the trend of corporate treasury reserves in motion since then.
As a result of the innovative, albeit risky, move, the company’s shares soared to recheck the resistance level of the dot-com bubble. The rejection left MicroStrategy “on the ropes” amid the recent Bitcoin sell-off, suggesting that things could potentially go much deeper.
Michael Saylor continues to buy Bitcoin while prices are falling
The frenzied Bitcoin bull Michael Saylor has been the mouthpiece of the top cryptocurrency by market cap for the past few months, essentially acting as CEO, marketing department, corporate development manager and social media manager all rolled into one.
He uses his platform to publicize the value of cryptocurrency, which he has repeatedly doubled and tripled, and a few more.
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At the speed he’s traveling, the guy will have a wallet with more BTC than Satoshi in another year or so. Until recently, this has paid off dramatically for Saylor and everyone he has influenced and bought as the price per coin has increased significantly.
MicroStrategy shares went parabolic like Bitcoin | Source: NASDAQ-MSTR on TradingView.com
At the same time, the price per share of MicroStrategy (MSTR) also went parabolic, mimicking the current Bitcoin price chart.
The recent sell-off and potential high point in the market-cap leading cryptocurrency is following a similar downtrend after doing the same thing on the way up.
MicroStrategy stocks on the ropes, here’s why investors might be uncomfortable
MicroStrategy stocks are now “on the ropes,” according to a leading crypto analyst. A potential retest could be underway, and if the attempt fails, it could be a technical knockout to the company’s crypto-powered rally.
But could this also mean that the sentiment in Bitcoin is changing so much that MicroStrategy is negatively impacting it? The same theory, conversely, makes no sense.
Whatever the case, the chances are that Saylor’s bet on Bitcoin is correct, but it was still a bit early for the cryptocurrency.
Michael Saylor's company shares were hit hard post dot com era | Source: NASDAQ-MSTR on TradingView.com
Where the recent MicroStrategy rally peaked, resistance was due to the dot-com bubble. When that surfaced, Saylor was left behind as one of the biggest financial losers of the era, according to Fortune Magazine. Saylor had lost a total of $ 13.5 billion.
Related reading | Why March is the bloodiest month in Bitcoin history
Once again, Saylor could suffer huge losses due to its commitment to being a pioneer in cryptocurrency. The bold bet in Bitcoin has paid off, but its continued pressure has led many investors to question its speculative wager – which could primarily be behind the correction in MicroStrategy stocks.
Featured image from Deposit Photos, Charts from TradingView.com