The sharp drop in Bitcoin this week has renewed debate about whether large corporate holders might reconsider their exposure.
- Strategy is maintaining its long-term Bitcoin plan despite the recent market decline.
- The firm’s BTC holdings remain profitable, but MSTR stock has dropped sharply.
- Retail sentiment from recent polling suggests most holders did not sell during the downturn.
Strategy, the public company known for holding the largest Bitcoin reserve worldwide, has indicated that it is not shifting course. Although the company has not announced a new purchase, its chairman reaffirmed that the firm’s long-term approach remains intact.
Market Decline Raises Pressure
Bitcoin has fallen nearly 9% over the past week during one of the steepest corrections of the current cycle. The decline comes at a time of rising macroeconomic uncertainty.
According to a recent note referenced by ZeroHedge, Bank of America’s chief investment strategist said the Federal Reserve is nearing a point where it “needs to cut,” and warned that Bitcoin would likely react first if the Fed capitulates on monetary tightening. That outlook has added further stress to an already shaky market.
Strategy’s Bitcoin position — 649,870 BTC purchased at an average price of $74,430 — remains profitable by roughly 16%, despite the recent crash. The company’s stock has not shown the same strength.
MSTR has fallen toward the $170 level, erasing most of the premium it previously traded at over the value of its Bitcoin reserves. The decline has renewed questions over whether Strategy still has enough financial buffer to withstand additional downside if Bitcoin continues to fall.
Retail Sentiment Remains Strong
A community poll conducted by the company’s chairman shows that 77.8% of respondents did not sell any Bitcoin during the recent downturn, even as BTC briefly approached the $80,000 area. The result suggests that a large segment of retail investors continues to follow a long-term holding strategy rather than reacting to short-term volatility.
Not everyone sees long-term resilience in Bitcoin. Critics argue that the recent drop is another example of Bitcoin behaving like the most vulnerable asset during periods of market stress. According to this view, each downturn pushes BTC from stronger holders to weaker holders, increasing the likelihood of even larger sell-offs in the future.
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Source: https://coindoo.com/strategys-michael-saylor-doubles-down-on-bitcoin-while-the-market-panics/