📈 How low will the price of Bitcoin fall before MicroStrategy goes bankrupt?
Recently, people have been discussing whether MicroStrategy is at risk of bankruptcy if Bitcoin enters a bear market again, especially as the company continues to increase its holdings of Bitcoin by selling stocks and bonds. Therefore, the outside world has expressed doubts about whether MicroStrategy can withstand the impact once the price of Bitcoin falls sharply.
Looking back at history, during the last bear market cycle, the market was full of negative reports about MicroStrategy, and many people were skeptical about its prospects. However, MicroStrategy eventually withstood the pressure and successfully survived that difficult period.
Entering this bull market, MicroStrategy continues to adhere to its DCA strategy, borrowing more funds to buy Bitcoin, showing its company's long-term confidence in the value of Bitcoin and the continuity of its investment strategy.
In this regard, analysts pointed out that the price of Bitcoin needs to fall below $18,826 before MicroStrategy will face the risk of financial bankruptcy. Therefore, it seems unlikely at present. Because to reach $18,000, Bitcoin needs to fall by more than 80%. However, considering that the maximum drop of Bitcoin in the last cycle was only 77%, coupled with the entry of large institutions in the past year, the probability of such an extreme situation is very low.
In addition, the current institutional demand for Bitcoin is extremely strong, and they are scrambling to hoard more Bitcoin. It is observed that 13.5% of the total supply of Bitcoin, 21 million, is held by various institutions, including listed companies and issuers of Bitcoin spot ETFs. This proportion is expected to continue to rise in the next year.
Some people say that the Bitcoin market is now occupied by large institutions, but don’t forget that in the previous bear market, we retail investors actually had the opportunity to deploy earlier than institutions. Moreover, with the entry of institutional investors this year, it may bring opportunities for early investors to increase prices and significantly increase returns.
In summary, the key to investment is foresight. Be able to see potential investment opportunities one step ahead of others and enter the market in advance. Only in this way can you reap rich returns from your investment and even achieve a reversal of life.
