Bitcoin price drops below $ 40,000, creating bearish sentiment. BTC is now down 40% from its highs, which is in line with the worst declines of 2017. Bitcoin currently holds the 200-day moving average after briefly falling below it in the early hours of the morning.
Source: BTCUSD on TradingView.com
William Clemente III. Found that Bitcoin inflows into Binance were never higher at around 27,000 units. This would suggest that sellers are keen to liquidate their holdings, expand the bear case, and dent the narrative about Bitcoin as an institutional-grade store of value.
Source: @WClementeIII on Twitter.com
Bitcoin haters sharpen their knives
Gold bug Peter Schiff took the opportunity to weigh the Bitcoin sell-off and targeted companies that had bought BTC as an inflation hedge. Schiff called out “asinine advice” from MicroStrategy’s Michael Saylor, saying that bitcoin losses are now well in excess of expected annual inflation.
He said it was time to jump the ship.
“CEOs who followed @ michael_saylor’s advice to put their balance sheets in #Bitcoin to hedge against an expected annual inflation rate of 2% are now down as much as 34% from their” hedge “in a month. That’s 17 years of expected inflationary losses. Time to pull the plug! ”
Saylor was an outstanding figure in promoting Bitcoin for businesses. Earlier this year, MicroStrategy hosted an online event where he shared MicroStrategy’s playbook on investing in BTC as a treasury strategy. Over 1,400 companies took part in the event.
In response, Saylor posted a screenshot showing the gold return versus Bitcoin at -77% over the past 12 months. This sparked a frenzied eruption from Schiff. He called Saylor a coward for not wanting to argue with him about the gold versus bitcoin argument.
“Besides, instead of just posting irrelevant [sic] Responses to my tweets, why don’t you agree to debate me? So far you have declined every opportunity to do so. I realize that you are afraid of actually confronting me and defending your ridiculous views, so take the coward’s way out. ”
Saylor countered that the basis for the debate was unclear because Schiff had a wide range of recommendations, not just gold. In addition, his “just not buy too much” restriction of anything does not provide definitive answers.
MicroStrategy is expanding its inventory again
Unimpressed by the bear market, Saylor announced another Bitcoin buying spree for MicroStrategy – the second since the Elon FUD last week.
In a tweet, the MicroStrategy chief said the company had spent $ 10 million to acquire an additional 229 BTC.
“MicroStrategy bought another 229 bitcoins for USD 10.0 million in cash at an average price of ~ USD 43,663 per #bitcoin. As of May 18, 2021, we purchased ~ 92,079 Bitcoins for ~ 2.251 billion USD at an average price of ~ 24,450 per Bitcoin. ”
Bitcoin is at a critical point. Time will tell if Saylor’s trust is justified.