Amid the decline and subsequent stagnation of Bitcoin in the market, opinions have increasingly surfaced that Strategy will be obliged to liquidate some of its holdings. From the local peak on July 16, MSTR shares issued by the company plummeted by 65%—from $456 to $158, analysts reported.
The community fears that if the price of Bitcoin drops even further, Strategy will no longer be able to service its debt obligations. However, experts deem such an outcome highly improbable, and furthermore, the firm’s debt maturity dates are staggered over time.
“When retail investors widely discuss bankruptcy and asset sales, it signifies that ‘weak hands’ have already exited their positions. There are hardly any sellers left in the market. The current panic is a hidden bullish signal for Bitcoin,” Santiment clarified.
According to specialists, historically, reaching a peak fear level frequently coincided with the bottom of the crypto market. After trader and investor sentiment stabilizes and shifts to neutral commentary, a recovery in the price of the premier cryptocurrency should be anticipated.
Earlier, entrepreneur, crypto industry veteran, and CEO of 10T Holdings, Dan Tapiero, stated that it is too soon to discuss the end of Bitcoin’s growth cycle—on the contrary, the market is in its middle phase.
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