(Last Updated on February 3, 2021)
The past week was a wild ride for everyone who was paying attention to our traditional and cryptocurrency markets.
-> r/WallStreetBets going OFF and short squeezing GameStop ($GME) to well over $350 dollars a share – costing multiple hedge funds billions of dollars and forcing trading exchanges like Robinhood, E-Trade, Charles Schwab and others to shutdown temporarily.
-> Elon Musk adds the #Bitcoin hashtag to his Twitter profile and creates an instant pump and dump that ranged over $6,000 dollars. Bitcoin straight up to $39k and back down to $33k in a matter of hours.
-> Elon then goes on Clubhouse and states his opinion on Bitcoin – believes it is a good thing and wishes he had jumped onboard earlier.
-> Vlad CEO of Robinhood enters Clubhouse and gives a whiney, half true response about running out of capital and SEC requirements which are only accurate to his margin trading accounts. Why would you shut off the 1:1 stock purchasing? Lies..
So what has Michael Saylor and MicroStrategy been up to with all the craziness going on in our traditional and digital financial markets?
Just keep buying.
They are not phased, staying on target, and keeping after the plan.
Another $10 million of that dirty fiat thrown into the satoshi stack..
Another SEC filing over more Bitcoin tucked away into the MicroStrategy stash. And if his podcasts and interviews are of any substance to what the true plan is – these coins are unlikely to do anything, outside of sit in cold storage, for many years, even decades.
“On February 2, 2021, MicroStrategy Incorporated (the “Company”) announced that it had purchased approximately 295 bitcoins for $10.0 million in
cash, at an average price of approximately $33,810 per bitcoin, inclusive of fees and expenses. As of February 2, 2021, the Company holds
approximately 71,079 bitcoins that were acquired at an aggregate purchase price of $1.145 billion and an average purchase price of approximately
$16,109 per bitcoin, inclusive of fees and expenses”
As of today MicroStrategy $MSTR is the #1 Bitcoin corporate hodler with 71,079 BTC and so far it has benefited the company and its shareholder with gains in the hundreds of millions of dollars.
The peer pressure buying continues with another $10 million of Bitcoin purchased at an average price of $33,808.
I think 90% of traditional financial investors, in a similar asset position to Saylor currently, would be looking to hedge into profits and be ready for large dips to happen throughout the cycle.
It is easy to do the research and feel you understand Bitcoin’s technical prowess and implications with blockchain.
But to understand these cryptocurrency markets?
Daily swings in Bitcoin or any altcoin will make most investors feel weak, confused, and terrified.
It takes serious conviction or you will not have the confidence to ride out major volatility and hodl long term.
$MSTR is a Bitcoin company – they are a low time preference, satoshi stackin’, fiat eating machine.
But Michael Saylor and MicroStrategy certainly are playing a “macro” strategy game and apparently understand Bitcoin very well.
Almost seems like he is cementing this price floor as this consolidation becomes tighter and tighter. More and more rumors flood about with exchanges being ‘light’ on supply with serious demand volumes, even at record prices.
Continued pressure to traditional investors utilizing gold as their anti-inflationary hedge.
The meme’s have been fierce and no doubt Peter Schiff has been feeling the pressure.
Slowly gold bugs are finding it necessary to move into the next evolution of anti-inflation and anti-fiat fighting digital assets.
Peter Schiff is a dying breed of old school, apocalypse toting, gold bugs that are losing their minds at the continued success of Bitcoin. Gold does have a solid set of fundamentals behind it – but the world has evolved beyond gold and it’s utility to survive in a digital age is growing slim.
Michael Saylor has found ridiculous success in his business career by staying ahead of the curve.
There is no one with a stronger track record at investing during the proper times when it comes to technology product cycles and economic effects.
He’s repeated this successful investment approach in emerging technologies over and over again as one of the longest surviving CEO’s in U.S. stock market history.
Bitcoin has held $30,000+ for over 30 days
Will we see Bitcoin rip down to test the 2017 high before moving higher?
It seems far less likely as we continue to show impressive, consistent buying pressure above the $30k range. This is before we see additional macro events happen that should elevate price.
Upcoming macro events that *should* influence Bitcoin:
-> Proposed $1.9 Trillion in a new COVID-19 relief bill including individual stimulus checks
-> Post halving affects usually pump to new all-time high prices about 350-500 days after halving occurs
Who knows what the reality will be in terms of how much the U.S Dollar M1 monetary supply will be inflated over the next decade.. But we are 100% sure that some relief bill will be passed this month or next. Republicans are suggesting a much more modest bill at around $660 billion compared to the near $2 Trillion proposed.
They will most likely come to an agreement much closer to the Democrats proposal amount due to their slight majority control of the senate and new appointees in the Treasury and Federal Reserve.
What are possible near term events that would crash BTC price?
-> Bitcoin receives heavy regulations targeting individuals through increased taxation, banned self-custody, and other mandates
-> Exchanges face heavy regulation adding tons of friction to the crypto market and killing many advantages over traditional finance
What are possible near term events that will PUMP Bitcoin SKY HIGH?!
-> Tesla goes public stating they have added Bitcoin to their treasury reserves
-> Supply is getting so scarce we start feeling the supply get squeezed this next month as HODL activity increases
-> A second stimulus bill is announced after this first Biden bill is passed