On Saturday, March 23, Bitcoin advocate and MicroStrategy Inc. chair Michael Saylor shared a chart comparing Bitcoin’s performance with traditional assets like the S&P 500, Nasdaq, gold, silver, and bonds. This chart highlighted Bitcoin’s growth of 432%, compared to the S&P 500’s 56% and Nasdaq’s 50%.
While Bitcoin continues to thrive, silver and bonds have been struggling, with losses of 13% and 19%, respectively. Gold, on the other hand, has seen a modest increase of 7%.
Saylor sees this as an opportunity to assert Bitcoin’s supremacy in the investment landscape. However, following Bitcoin’s record high of $73,797 on March 14th, the digital currency experienced a decline of almost 12%, causing debates in the cryptocurrency community.
Saylor, known for his bullish attitude on Bitcoin, took to social media to share his perspective on the market’s volatility. In his opinion, volatility is equal to vitality, and fluctuating prices are integral to the market’s dynamics. He argues that these fluctuations are natural phenomena and not a cause for alarm.
Under Saylor’s guidance, MicroStrategy has solidified its commitment to Bitcoin by significantly increasing its holdings. In a recent press release, the company revealed that it had acquired over 9,000 BTC between March 11 and 18, funded through a mix of convertible senior note offerings and cash reserves.
This latest purchase comes after MicroStrategy’s successful private offering, which raised $603.75 million. The company’s Bitcoin treasury reserves now total approximately 214,246 BTC, at an average price of $35,160 per BTC.
While Saylor is aggressively purchasing Bitcoin, economist Peter Schiff, known for his skepticism about cryptocurrencies, has expressed concerns about this approach. He warns of the high-risk nature of aggressive Bitcoin accumulation and cites volatile digital currencies as a potential pitfall.
Schiff notes that despite Saylor’s assertive leveraged purchasing, Bitcoin is still down 15% from its peak. He predicts that the market may experience a major drop if the buyer has completed their shopping spree. Schiff projects possible losses for MicroStrategy, saying that if Bitcoin drops to $20,000, the company could lose $3.25 billion, escalating to $5.5 billion if the coin’s price reaches $10,000.
In the end, it remains to be seen who will be proven right in this ongoing debate about Bitcoin’s future. For now, cryptocurrency enthusiasts can follow the latest developments and market trends on Google News.
