Why is the market declining? The largest bitcoin investor responds

Michael Silver, CEO of Micro Strategy, one of the largest investors in the Bitcoin market, recently mentioned in an interview the reasons for the collapse of the digital currency market. He said the current market situation is a good entry point for those who have not yet invested in Bitcoin.

To Report CryptoGlobe co-founder Michael Silver, co-founder, CEO and CEO of Microstrategy, pointed out in a recent interview two reasons for the current slump in the digital currency market.

On August 11, 2020, Micro Strategy announced in a press release that it had bought 21,454 bitcoins for $ 250 million to use as its main reserve asset for its treasury.

Silver had said at the time:

Our decision to invest in Bitcoin is partly due to the intersection of macro factors affecting the economic and commercial outlook, and we believe that these factors pose risks to our corporate treasury plan in the long run; These are dangers that must be constantly considered.

Since then, Micro-Strategy has continued to accumulate bitcoins, and its CEO has become one of the most ardent supporters of bitcoin. Micro-Strategy currently holds 124,391 bitcoins, valued at approximately $ 4.37 billion at market day (February 4).

Silver’s latest comments on digital currencies were made in an interview with Bloomberg presenter Emily Chang. In this interview, Silver cited two reasons for the declining digital currency market:

I think there are a lot of motivations in this regard. If you look at the whole digital currency ecosystem, the uncertainty of regulators, especially about the regulation of stable currencies and digital currencies, and whether or not they can be considered as securities, has affected the market and caused a bit of anxiety for investors. .

He added:

Aside from the US debate, the use of leverage has been high. There are many digital currency exchanges in which investors can trade with 20x leverage. These exchanges have a lot of tokens that have been mutually pledged. By comparing centralized digital currency exchanges with decentralized exchanges, you will see that you can access leverage much higher than 20 times in decentralized samples. So this is the second most recent fluctuation.

Silver believes the current market situation is a great entry point for curious institutional investors about digital currencies that have been watching the market from afar.

He continued:

I feel that the market is stabilizing at its current level. This is a great entry point for institutional investors. I talk to a lot of rich people, family offices, corporate executives and private business owners, and they have all seen the growth of bitcoin in 2021. There are many people who are afraid of owning a bitcoin, even if it is supposed to have a return of 400% per year.

He said at the end:

But if you look at the recent market trends and see that the price has fallen by 40% from the previous historical record and is stabilizing, on the other hand, you can see that reputable investors like Bill Miller have accepted bitcoin, regulators from It has been welcomed by senators and members of Congress, investors and public corporations alike, who understand that the current market trend is a good place to enter.