Bitcoin

Bitcoin At Risk of Immense Selling Pressure, Will the BTC Price Drop Below $20K Again?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Aug 3, 2022

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Article Highlights
  • The Bitcoin price has maintained a significant descending trend from a long time and is now believed to continue with the same trend

  • Microstrategy undertakes a non-cash digital impairment on its BTC holdings

The biggest Bitcoin Whale, microstrategy took a non-cash digital impairment of more than $900 million on their BTC holdings in Q2 of 2022. On the other hand, the CEO of Microstrategy, michael saylor resigned and took the charge of the executive chairman role. Therefore, the analyst believes the footsteps of Tesla may be followed. 

Bitcoin price is swinging displaying uncertain price actions as the price hovers within a narrow range for more than 4 consecutive days. On the other hand, if Microstatergy begins to sell its holdings, similar to that of tesla which sold 75% of its holdings, BTC could soon face huge selling pressure while the coins in circulation may surge by 1%. 

A popular analyst believes, that very soon Bitcoin prices may dump hard as MicroStrategy may follow Tesla’s footsteps. 

If the BTC price continues to drop hard, the CFO of Microstrategy, Andrew Kang said that 85,000 unpegged BTC will be available to reach the collateral requirements if the volatility peaks are high. As the company acquired Bitcoin at an average price of $30,664 per BTC and hence the company is already at a loss of above $8000 per BTC at the press time. 

Collectively, Bitcoin despite showing some strength in recent times still is exposed to the fear of a drastic drop. No doubt Micheal Saylor has not given any hint of liquidating its holdings, but the possibilities also may rise the chances of a substantial drop. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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