The current market situations are not as positive as many crypto enthusiasts had hoped. After struggling for weeks to reach the $40,000 price mark, the flagship cryptocurrency is now trading at $30,338 (at the time of writing).
The price movement has been around this region for a few weeks now. The downward momentum seen for BTC’s price has made several interested parties skeptical about whether or not they should invest in BTC and keep hodling the Bitcoin they own.
Despite this sentiment, the crypto market crash may very well turn out to be in favor of the crypto king. This is certainly what the CEO of MicroStrategy, Michael Saylor, seems to think.
Let’s find out more details below.
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Could BTC Benefit from the Current Market Situation?
Bitcoin is the most prominent and largest crypto asset in the world. It also majorly dominates the crypto space, which is why the prices of other altcoins fluctuate when the price of BTC moves.
The price of the flagship digital asset is trading around the $30k price region for the past few weeks. Here is a graph by CoinMarketCap, showing theprice of BTC over the last month.
The price movement as seen above can cause anyone to have second thoughts about investing in BTC or considering that this could be positive for the crypto king.
However, Michael Saylor seems to think otherwise and has even stated that the crash of the crypto market is “great” for BTC.
MicroStrategy has one of the biggest BTC holdings in the world right now. In 2020, the company purchased 21,454 BTC intending to use it as a “primary treasury reserve asset”.
The company kept accumulating Bitcoin and now hodls around 129,218 BTC.
Michael Saylor, the CEO of the company, also recently stated that the entire crypto space consists of “one perfect thing, which is Bitcoin and its digital property.”
According to Saylor, there are a few imperfect things in the crypto space as well, which are stablecoins.
He even took to Twitter and posted the following.
Michael Saylor revealed why he thinks this crypto crash is beneficial for Bitcoin and stated the following:
“I think this entire crypto crash is going to be great for Bitcoin. It’s going to accelerate some much-needed regulation of stablecoins, altcoins and the exchanges. It’s eliminating the political deadlock. It’s educating the world in the difference between Bitcoin and security tokens, and that’s going to facilitate the entry of institutions into this space.”
The extent to which the market situation can benefit the crypto king will be clearer once it is seen occurring in real-time.
The cryptocurrency future is always ambiguous as several factors play a key role in determining where the crypto market will steer next. However, digital assets, especially BTC, have an undeniable significance and value, which grabs the eye of a large audience globally.
Are you a New Crypto Investor?
Many interested parties want to know why cryptocurrencies are dropping, considering the current market situation. As a beginner, you should know that several reasons cause the prices of digital assets to either move up or down. Sometimes, the price correction is necessary to boost it upwards in the long run.
While it may not be possible to pinpoint the exact reason for price movements every time, there are other factors you can keep in mind to have a good experience of buying digital currencies.
Here are some helpful tips that can be crucial for every new investor to know.
- Always start by investing as much as you can afford to lose.
- Make sure you opt for one of the best and most secure crypto exchanges.
- Keep an eye on the price movement of your preferred cryptocurrency.
- Know when to invest.
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