Member-only story
Bitcoin Fell 21% After Strategy’s Debt Buyback. Should Investors Be Worried?
Bitcoin has dropped more than 20% in just ten days, falling back toward the $61,000 level for the first time in four months.
Gab | Crypto & Trading4 min read·Just now--
Not a Medium member? Read the full article here.
The decline has coincided with an unexpected development from Strategy, the company formerly known as MicroStrategy and one of the largest corporate Bitcoin holders in the world.
After months of aggressively accumulating Bitcoin, Strategy announced a buyback of part of its corporate debt, temporarily slowing the pace of its purchases. For many investors, that raised an uncomfortable question:
What happens when Bitcoin’s biggest corporate buyer steps back?
Why The Market Reacted So Strongly
Since March, Strategy had acquired more than 126,000 BTC worth approximately $9.3 billion, becoming one of the most important sources of demand in the Bitcoin market.
That buying activity helped support prices throughout multiple corrections and created a narrative that Strategy would continue accumulating almost indefinitely.
