The strategy’s founder, Michael Saylor, hinted that his company increased its Bitcoin holdings after the cryptocurrency fell more than 13% over the weekend, briefly prompting the major firm to invest in Bitcoin. $BTC position in the red.
“No more Orange,” said the executive chairman of strategy at
Source: Michael Saylor
This would be Strategy’s fifth Bitcoin ($BTC) purchase this year, with the largest taking place on January 20, when he purchased 22,305 Bitcoins. Strategy is by far the largest Bitcoin treasury company with over 712,647 Bitcoins under its belt.
Strategy’s early purchases of Bitcoin, along with the rise in the price of Bitcoin, have meant that over the past five years the company has primarily made profits from its Bitcoin holdings.
However, Bitcoin’s fall from $87,970 to $75,892 over the weekend briefly pushed it below the strategy’s cost base of $76,040, before Bitcoin rebounded to $76,765.
The crash came after U.S. President Donald Trump on Friday nominated former Federal Reserve Governor Kevin Warsh to replace Jerome Powell as central bank chairman.
Although Warsh has spoken favorably about Bitcoin, he is widely seen as a more hawkish choice for Fed chair who would push for fiscal restraint, lower inflation and an exit from quantitative easing.
Gold and silver also fell significantly following Trump’s announcement – falling double digits after a months-long rally to new highs – while the Standard and Poor’s 500 stock index fell about 0.43%.
Crypto market sentiment at six-week low
Crypto market sentiment also appears to be deteriorating, with former Binance CEO Changpeng “CZ” Zhao saying on Saturday that he is now “less confident” about the “Bitcoin supercycle” he predicted last month.
“Given all the FUD and all the emotions that have been stirred up in the community, I’m less confident about it now,” he said during an Ask Me Anything stream from Binance Square.
The Crypto Fear & Greed Index score fell six points to 14 out of 100 on Sunday, the lowest score in more than a month.
