Bitcoin Takes a Tumble

Oh boy, Bitcoin had quite the roller coaster ride over the weekend! The price dropped to a jaw-dropping $76,000, leaving many investors feeling like they just stepped off a crazy amusement park ride and realized they had lost every penny in their pockets. Talk about a bummer!

Meet Michael Saylor and the BTC Blues

Among the unfortunate souls watching their crypto dreams take a nosedive was none other than Michael Saylor. His firm, Strategy, found itself in a bit of a pickle when Bitcoin’s price dived, testing its average cost basis, which snuck down to around that $76,000 mark. Oops!

Bitcoin’s Struggles

Over the last few months, our beloved Bitcoin has been on shaky ground, battling to keep above crucial price points like the elusive 360-day moving average and the short-term holders’ realized price. And surprise, surprise! Another level of cost basis was added to this growing pile of woes during this latest price tumble. Yay us!

Strategy’s Bitcoin Dilemma

What’s more, Strategy, the heavyweight champion of corporate Bitcoin holders, briefly went underwater when BTC crashed below their holdings’ average cost basis. Right now, they’re sitting on a whopping 712,000 BTC, but their stock price has taken quite the hit, plummeting from a dazzling $455 to just $143. Yikes!

A Cautious Recovery?

Currently, Bitcoin is hanging on by a thread, sitting approximately 2.5% above Strategy’s average cost basis. However, if BTC decides to take another dive and make itself comfortable below that level, Strategy could be nursing a massive unrealized loss, sending market confidence straight down the drain like a bad burrito.

Long-Term Commitment or Short-Term Sorrow?

Despite the drama unfolding, it seems like Strategy isn’t in a hurry to offload its Bitcoin stash, even in times of loss. Michael Saylor has been vocal about the long-term vision for the firm, preaching on the X platform that they are “built for the long run.” Let’s hope that long run isn’t an endless highway of losses!

Words of Caution from the Experts

However, these tumbling prices could raise some eyebrows about Strategy’s Bitcoin accumulation strategy. Julio Moreno, the big cheese at CryptoQuant, has been pulling no punches, advising investors to stop scoping for bottom prices after yet another downward spiral. According to Moreno, the recent drop below $76,000 is not just a fancy correction—it’s a bear phase that kicked off way back in November. When will this madness end?

The Current Situation

As I write this, Bitcoin is managing to creep back up a smidge, standing at around $78,070. But, let’s face it, that still reflects a nasty decline of over 6% in just the last 24 hours. And if you take a gander at the weekly number, it’s down about 12%. Ouch!