In a recent podcast, experts from Alliance DAO warned that Bitcoin could face the risk of a major crisis if the price falls below $58,000, the threshold they call the 'Critical Price Level.'

Why is $58,000 a Survival Threshold?

The price level of $58,000 is not just a random number. It is believed to be the average purchase price of MicroStrategy, the public company holding the largest amount of Bitcoin in the world with over 150,000 BTC, accounting for 3% of the total Bitcoin supply.

  • MicroStrategy, under the leadership of Michael Saylor, has heavily invested in Bitcoin as a long-term strategy.

  • However, if the price of Bitcoin falls below this level, the company could face the risk of asset liquidation, leading to significant losses for the entire market.


Crisis Could Be 100 Times Worse Than FTX and Terra Luna

According to analysts, the liquidation of MicroStrategy could trigger a much more severe crisis than the collapse of Terra Luna or the FTX exchange, two events that once shook the entire cryptocurrency market.

Potential repercussions include:

  • Domino effect: Many companies and investors could be pulled into a vortex of losses.

  • Loss of trust: Trust in Bitcoin and the cryptocurrency market could be severely eroded.

Optimistic Scenario: Bitcoin Reaches $500,000

Nevertheless, the podcast also presents a more positive outlook, where the price of Bitcoin could rise to $500,000 in the future.

  • At this price level, the amount of Bitcoin that MicroStrategy owns would make the company one of the most valuable enterprises globally.

  • Michael Saylor could become the first trillionaire, surpassing all records of wealth in human history.

What Does Michael Saylor Say?

As one of the strongest advocates of Bitcoin, Michael Saylor often refers to it as 'digital gold' – a reliable asset to protect against inflation. He believes that Bitcoin will become the center of the global economy in the future.

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