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Michael Saylor remains confident on Bitcoin recovery despite market slump

  • Bitcoin price takes a hit, but Michael Saylor confident BTC holdings can cover potential margin calls on BTC-backed loans. 
  • MSTR has lost 24% of its value in May, and Bitcoin price witnessed a massive drop, 17% losses over the past week. 
  • Analysts remain bullish on long-term Bitcoin price prediction, forecasting $200,000 within months. 

MicroStrategy CEO and Bitcoin proponent Michael Saylor is bullish on a Bitcoin price recovery. Saylor announced to his investors that the current BTC holdings of the company could cover margin calls on BTC-backed loans, if the price drops below $3,562, a new collateral will be provided. 

Bitcoin price recovery within months, predict analysts 

Bitcoin price has witnessed a sharp decline recently and a market-wide bloodbath in crypto, but despite this, analysts and proponents like Michael Saylor of MicroStrategy continue to remain bullish. Saylor assured his 2.4 million followers on Twitter that MicroStrategy has a $205 million term loan and maintains $410 million as collateral. 

The firm can pledge 115,109 Bitcoin; if the price of BTC drops below $3,562, MicroStrategy could post alternative collateral. 

Saylor believes the Bitcoin price could recover from the recent bloodbath, and MicroStrategy’s current Bitcoin holdings can cover margin calls on their BTC term loan. MicroStrategy’s Q1 2022 Financial Results presentation reveals the critical details of the first BTC term loan. 

First Bitcoin Backed Term Loan

Analysts have evaluated the Bitcoin price trend and predicted a recovery and upcoming trend reversal in BTC. Gert van Lagen, a crypto analyst and trader, used the Elliot wave channeling method to predict $200,000 Bitcoin within months. 

The analyst argues Bitcoin price is currently in a corrective 4th wave but could witness a trend reversal and break out into a massive rally – its 5th wave – targeting a new all-time high of $200,000. 

 

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