Over the past few hours, Bitcoin’s valuation stumbled down to $11,300, as the support line at $11,500 was briefly breached. With the price recovering back up to $11,375 at press time, it is fair to say that the asset is struggling at the moment.
Keeping that in mind, major organizations were hardly getting deterred as some of them saw huge potential in Bitcoin from a long-term scenario.
According to a report by Fortune, MicroStrategy, a Virginia-based business intelligence software organization, they have accumulated a whopping 21,454 bitcoins worth nearly $ 250 million. The business firm worth more than $1.2 billion, also listed on NASDAQ, indicated that the digital asset offered a “reasonable hedge against inflation” and that, it was a “capital allocation strategy“.
With the dollar economy substantially weakening in 2020 due to the apparent Pandemic and consistent quantitative easing measure, Michael J. Saylor, CEO of MicroStrategy, indicated that they were currently turning their heads towards digital assets. According to him, the company believed that such “alternative investments” allow MicroStrategy to protect that U.S dollar-dominated balance sheet. He added,
“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility and community ethos of bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.”
The announcement inevitably gained attention from the Bitcoin community, and none other than Barry Silbert, CEO of Grayscale, responded on Twitter. Silbert conveyed,
Such mainstream investment by a publicly traded firm unheard of in the markets of Bitcoin. Organizations with such credibility usually inject capital into bonds or stocks as part of a capital hedge strategy, so taking the route to Bitcoin only strengthens the legitimacy of the digital asset.
Willy Woo suggested Bitcoin is in Major bull phase
Although some of the people were lamenting on the short-term decline of Bitcoin, Willy Woo, popular crypto analyst, and Bitcoin proponent suggested that the digital asset is currently entering a major bull phase.
He suggested that 93.5% of the total Bitcoin supply is currently in profit hence, even though the price under a state of correction, it is all part of the long-term picture.
Previously, Woo had explained that the Bitcoin bull/bear cycle is triggered by the reduction of sell pressure after every 4 years post-halving. Since the beginning, the rally has become more and more stretched out, as the selling pressure from each halvening cycle continues to drop. Therefore, Bitcoin’s current 4-year cycle of the rally may eventually transcend into a traditional rally that may last 10 years.