The strategy’s founder, Michael Saylor, suggested his firm added Bitcoin to its holdings after the cryptocurrency fell more than 13% over the weekend, briefly pushing the firm’s enormous BTC position into the red.
“More Orange” – Executive Chairman of Strategy sent to Oct. on Sunday, along with a chart showing the $55 billion in Bitcoin purchases his company has made since August 2020. Saylor often posts the chart as a signal that his company has bought or plans to buy Bitcoin.
This would be Strategy’s fifth purchase of Bitcoin (BTC) this year, with the largest taking place on January 20 when the company purchased 22,305 Bitcoins. Strategy is by far the largest Bitcoin treasury company, with over 712,647 Bitcoins under management
Strategy’s early purchases of Bitcoin, coupled with the rising price of Bitcoin, have meant that over the past five years the company has generated profits primarily through its Bitcoin holdings.
However, the price of Bitcoin dropped from $87,970 to $75,892 over the weekend, it briefly pushed it below the strategy’s cost base $76,040before Bitcoin later rebounded to $76,765.
The crash occurred after U.S. President Donald Trump on Friday nominated former Federal Reserve Governor Kevin Warsh to replace Jerome Powell as central bank governor.
While Warsh has spoken favorably about Bitcoin, he is widely seen as a more hawkish choice for Fed chairman who would push for fiscal restraint, lower inflation and an exit from quantitative easing.
Gold and silver also fell significantly after Trump’s announcement – a double-digit decline after months of rallying to novel highs – while the Standard and Poor’s 500 stock index fell about 0.43%.
Cryptocurrency market sentiment is at its lowest level in six weeks
Cryptocurrency market sentiment also appears to be deteriorating, with former Binance CEO Changpeng “CZ” Zhao stating on Saturday that he is now “less confident” about the “Bitcoin supercycle” he predicted last month.
Related: $1.82 billion pulled from spot Bitcoin and Ether ETFs as metals rally
“Given all this discussion and all the excitement in the community, I’m less confident about it now,” he said during the Binance Square Ask Me Everything broadcast.
Crypto Fear & Greed Index score cut on Sunday, six points to 14 out of 100, the lowest score in over a month.
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