- Michael Saylor confirms holding Bitcoin despite its price falling below $50,000 amidst a broad market downturn.
- MicroStrategy’s stock, NASDAQ: MSTR, experiences a 16% decline today, with total weekly losses exceeding 27%.
As Bitcoin’s value falls below $50,000, Michael Saylor, Chairman of MicroStrategy, has publicly reiterated his commitment to retaining his Bitcoin investments. In a recent post on X, Saylor confirmed his strategy to hold Bitcoin despite the current market downturn, which has seen Bitcoin’s market capitalization decrease by over $200 billion in the past 24 hours.
HODL pic.twitter.com/qIMam5yFaI
— Michael Saylor
(@saylor) August 5, 2024
MicroStrategy’s stock, listed on NASDAQ as MSTR, also reflected the market’s instability, dropping 16% today, culminating in a total decrease of 27% over the past week. This downturn parallels similar losses across other public companies engaged in the cryptocurrency sector.
In the face of these market challenges, Saylor announced during MicroStrategy’s quarterly earnings call last week that the company plans to secure an additional $2 billion in funding to increase its Bitcoin holdings. This move indicates Saylor’s ongoing confidence in Bitcoin’s long-term value.
Contrastingly, the price of gold has shown more stability than Bitcoin. The spot price of gold has decreased by less than 2%, currently trading at $2,394. Economist Peter Schiff has advocated for gold and silver as safer investments during economic downturns and stock market volatility.
Schiff also commented on the Federal Reserve’s potential monetary policy response to the downturn, suggesting that an increase in the money supply could lead to lower real interest rates and a depreciation of the dollar, which might cause inflation to rise.
This weekend’s #Bitcoin crash is an example of why Bitcoin will never be a reserve asset for any major government or central bank. A reserve asset must have relatively low volatility. It needs to be readily sold when needed. It can’t crash more than assets it’s supposed to hedge.
— Peter Schiff (@PeterSchiff) August 5, 2024
He criticized Bitcoin’s volatility, arguing that its instability makes it unsuitable as a reserve asset for major governments or central banks, as a reserve asset should possess low volatility and maintain stability.
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