The reason for the fall in Bitcoin prices could be the sale of MicroStrategy
After a period of stable growth, Bitcoin lost more than 20% of its value in just a couple of days. At the same time, this fall became one of the most rapid in recent years. It took less than one hour for the price to collapse. But what caused this?
After many investors expected a rise of $53,000, the main cryptocurrency disappointed them, dropping to $43,685. After that, Bitcoin rallied and recovered slightly, gaining a foothold at around $46,000. Traditionally, following Bitcoin, the prices of other tokens began to fall. SOL (Solana) has become a separate entity among them, having suffered minimal losses against the background of strong growth over the last month.
The incident caused a heated discussion in the crypto community. The reason for this was the “suddenness” of the fall in prices. Many simply did not understand what prompted the main cryptocurrency to “sink” almost $9,000 overnight.
One of the first to share his theory was a Twitter analyst known as Mr. Whale. According to him, Michael Saylor is behind the incident, whose company decided to sell part of its huge supply of Bitcoins, moving them en masse to the account of MacroStrategy LLC. Due to their status as limited liability companies or LLCs, they are not obligated to report their sales to the SEC. By transferring 92,079 BTC to the MacroStrategy LLC account, Saylor's company was able to “drain” Bitcoins without publicity. Only the market still reacts to such large sales.
Some insiders also argue that Saylor's company is not doing so well. While the head of MicroStrategy has not sold his shares since 2012, the company's chief financial and technical directors, Fong Le and Timothy Lang decided to “get rid” of their shares in August this year by exchanging 30% of the options. Le sold 10,000 of the received options, subsequently receiving $7.1 million for the shares, and Lange got rid of 20,000 options, selling shares for more than $7.3 million.
At the same time, their actions took place without any trading plan agreed with the company's management. This has prompted some analysts to speculate about Le and Lang's concerns about the viability of Saylor's main strategy of injecting Bitcoin regularly.
To date, MSTR shares have dropped nearly 77.37% over the past six months, although the year-over-year growth still looks impressive at 497.47%. The sale of shares by the directors of the company is unlikely to seriously scare away MicroStrategy investors, but at least it can make them worry, which is why the firm decides to sell some of its crypto assets.
But for now, these are only guesses by Mr. Whale, and time will tell how true they will be. Now the price of the main cryptocurrency on the market is $47,030 on Huobi.
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