- 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.
MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx
— Michael Saylor⚡️ (@saylor) May 10, 2022
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.
$BTC [1W]: #Elliottwave channeling method shows 200k+ is possible within months.
— Gert van Lagen (@GertvanLagen) May 10, 2022
✅Macro 3-4 retraced to the terminus of the 3-4 wave within Macro 2-3 wave (dashed line)
✅1-2 SHARP
✅3-4 FLAT
source: Elliott Wave Principle Key to Market Behavior by Frost and Prechter.#BTC pic.twitter.com/ypNCvUbtDc
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.