The capitalization of the global market for cryptocurrencies increased slightly over the past 24 hours while Bitcoin also showed some signs of improvement. While Terra (Luna) is not even in the top 20 cryptocurrencies anymore, Dogecoin is back in 10th place measured by market value.
It is interesting to note that altcoins BNB, ETH and XRP showed a higher recovery rate than bitcoin over the last 24 hours.
However, with the price now at the lowest it has been this year, the institutional mood towards the digital asset has changed, however, and it has resulted in great approaches to the digital asset for the first time in weeks.
This is a complete reversal on the part of institutional investors who withdrew money from the digital asset to invest it in their portfolios. of altcoins.
According to reports from cryptocurrency, institutional investors would largely contribute to the sales pressure on the negative price premium.
Michael Saylor cleans the air
When we talk about institutional investors, the first name that comes to mind is Microstrategy. So do Microstrategy sell bitcoins? How does the platform cope with a recent crash?
The current crash in the cryptocurrency market is an important test for bitcoin evangelists like Michael Saylor, CEO of Microstrategy. No, Michael Saylor does not sell all bitcoin, his latest tweet clarifies Microstrategy liquidation conspiracy theory.
Due to the constant crash, the price of bitcoin fell below the $ 30,000 mark. This created a situation of panic in the market, which became the support for many conspiracy theories about the popular crypto.
Some rumors suggested that after this crash, Microstrategy would likely be liquidated to get rid of its debt, and if such a thing happened, Bitcoin investors could have had the worst days.
Michael Saylor, after observing the panic in the market, however, even tweeted about the topic to clarify that there is no such option.
“MicroStrategy has a $ 205 million loan and needs to maintain $ 410 million as collateral. The $ MSTR has 115,109 BTC that it can pledge. If the #BTC price falls below $ 3,562, the company can provide another collateral.”
Recently, the company reported a massive loss on its bitcoin position, adding that it will face the first margin call after the first cryptocurrency crashes to $ 21,000.
Despite this, the CFO of Microstrategy is not worried due to Microstrategy will most likely provide funds for his position, which will allow him to reduce the average of his position and lower the margin call limit significantly. All thanks to the massive cash the company has.
In addition, many crypto community influencers have speculated that the company will only face liquidation when Bitcoin will reach critical values such as $ 3,000,
Microstrategy collapses with huge bitcoin-backed loans!
However, Michael Saylor has now confirmed that such a day will not come as his company owns 115,109 bitcoins, which is just enough to secure its $ 205 million debt. He also said there is no risk of the company being liquidated even if prices fall below the $ 3,562 mark.
Moreover, at some point bitcoin will stabilize before that. Reports, however, suggest that $ 21,000 is the margin reduction price for Microstrategy and at that point, the company may be forced to sell some of its own bitcoins, but certainly not all.
In times like these, many financial experts, Anthony Pompliano, spoke in his recent video about holding the ground to prevent investors from falling into such theories.
Pump qualified all the rumors of liquidation of Microstrategy by Michael Saylor on “just an interneting” and alarmism. He urged his followers not to panic about their investments. Anthony also claims that bitcoin is a lasting asset and the disadvantage will definitely go away.