Bitcoin Holdings Hit Below $8 Billion

Unrealized profits of Strategy from Bitcoin holdings have fallen below $8 billion, increasing pressure on Michael Saylor’s Bitcoin investment strategy. The cryptocurrency market is struggling, and Bitcoin has failed to maintain its recent bullish momentum.

Since 2020, MicroStrategy — now known as Strategy — has been actively buying Bitcoin, steadily growing its holdings even during downturns. However, the company’s profit margins have drastically decreased due to Bitcoin’s current price of about $83,000. Recent disclosures reveal that some of its latest acquisitions were made for over $97,000, resulting in immediate losses.

Despite the company’s dollar-cost averaging approach holding up over time, its viability is now questioned by Bitcoin’s recent price decline. Future purchases may be more cautious if the bearish trend continues as unrealized gains might further decrease.

Technically, the price of Bitcoin’s movement remains uncertain. The 200-day moving average is a crucial threshold as the asset tests important support levels. A break of this level could increase selling pressure, potentially leading Bitcoin into a more severe correction phase.

According to bullish analysts, the long-term fundamentals of Bitcoin remain solid, with rising institutional adoption. In contrast, bearish sentiments are driven by declining volume and a lack of factors to elevate prices soon.

Currently, all eyes are on Bitcoin’s ability to recover from higher resistance levels. A successful push above $90,000 could enhance confidence, but breaking critical supports may result in prolonged consolidation or further decline. Strategy’s next steps will likely hinge on Bitcoin’s stabilization and recovery of its bullish momentum.