- MicroStrategy executive Chairman Michael Saylor reaffirmed the company’s strong commitment to its Bitcoin accumulation strategy.
- Bitcoin’s price has dropped to around $74,000, with technical analysts predicting further corrections based on Elliott Wave theory.
Recent speculations from crypto circles have erupted following a recent SEC filing Strategy (formerly MicroStrategy). The filing indicates that the company may be considering selling off a major chunk of its Bitcoin (BTC) holdings if market conditions worsen. Yet a closer look shows, however, that the language in the filing tracks standard corporate risk disclosures, which are fairly common to find in many public company reports, not a warning of an imminent asset dump.
Will MicroStrategy Dump Its Bitcoin?
The document, filed on April 7, is one of those routine 8-K submissions that includes a discussion of possible financial risks, such as digital asset volatility, as highlighted in our previous story. While the chatter is going on, this doesn’t change Strategy’s strategic direction. Those statements have been similar in its other quarterly filings through 2023 and in early 2024. But online misinterpretations ran with the idea of the company preparing a major sell-off.
Exec Chairman of Strategy Michael Saylor reinforced the company’s long-standing position in X. In a short and pointed post, he wrote “HODL” to showcase Strategy’s declared position on Bitcoin accumulation.
Just days before, Saylor announced on March 31 that the company bought 22,048 BTC at about $1.92 billion on average, or $86,969 each, as reported earlier. Strategy’s Bitcoin treasury currently stands at 528,185 BTCs, having spent around $35.63 billion on BTC, or an average price of $67,458 as of March 30. Although the firm has already made no new purchases since then, it has still sent out an unequivocal signal of its robust belief in its Bitcoin strategy.
BTC Price Struggles To Continue?
At the same time, Bitcoin itself is enduring some high market stress. The BTC price has come down around $74,000, triggering debates as to whether the correction is over. Still, technical analyst Tony Severino maintains that this is only the start of a larger retracement.
Based on Elliott Wave theory, Severino states that the market has gone through a completed 5 wave bullish pattern up to the $85,000 level and is in the onset of 3 phase corrective ABC structure. According to his prediction, what we’re witnessing above is Wave A, whereby the bottom of this wave is expected to come in near a range of $62,000 to $65,000 by June 2025.
After this, Wave B (a temporary bounce) is expected before Wave C (which will go down further to $38,000 – $42,000 before April 2026). Severino’s model is also aligned with past market cycles (and Bitcoin’s historical cycle at that, so-called 4-year halving pattern), which would point to a potential continued bear market.
On the bearish side, Bitcoin recently formed what is known as a Death Cross — when the 50-day moving average goes below the 200-day MA — for the first time since September 2024. It is often considered as a strong downtrend indicator.
Nonetheless, these signals seem to shake Strategy not at all. At least for now, Strategy’s Bitcoin reserve strategy looks remarkably intact, a virtue that crypto’s insecurity is not lacking.
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