As of this writing, Bitcoin is trading at $94,238.21, up by 1.52% in the last 24 hours. Despite its trading volume surging by 34.12% to $54.58 billion, investors’ confidence has not impacted the price.
This slump in Bitcoin’s price has set MicroStrategy back by over $65 million from its last purchase alone. At BTC’s current rate of $94,238, MicroStrategy has suffered a loss of $65,375,088.
This is significant given that MicroStrategy is always ahead, with huge profit margins in previous purchases. As this stands, unless Bitcoin rebounds quickly enough, MicroStrategy could have a lot of loss to deal with.
Therefore, for MicroStrategy to meet its obligations to investors who bought these convertible notes, the price of Bitcoin must stay up. Primarily, a slump in price could trigger panic, causing its shares and MSTR to plunge as well. This development could negatively affect MicroStrategy’s capital base.
Additionally, as the largest corporate holder of Bitcoin, which has about 2.2% of the total supply, MicroStrategy’s actions could tremendously impact the asset’s price outlook.
Analysts insist that given the pending change of administration in the U.S. by Jan. 20, 2025, bullish sentiment could support Bitcoin on its price recovery path. How this unfolds, only time will tell.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
