As the price of bitcoin fell, shares of technology companies that bought bitcoin plummeted by 58%

Bitcoin (BTC) price recently experienced the biggest adjustment since the beginning of the bull market, and has been difficult to recover the psychological threshold of $50000. But the impact on cryptocurrency markets is far less bad than one of its biggest supporters. Although the company’s share price initially benefited from bitcoin buying, it was not enough to stop profit taking and eventually led to a 58% decline in the shares of MicroStrategy, an enterprise software development company. Here’s why this happens and how it affects current encryption market trends. After buying more bitcoin, the share price of micro strategy fell by 58%. It is undeniable that one of the biggest catalysts driving bitcoin’s recent bull market is that micro strategy disclosed for the first time that it purchased a large amount of bitcoin to increase the company’s asset reserve. Since then, its companies have followed suit, and chief executive Michael Saylor has tripled the number of bitcoin acquisitions. Since the initial acquisition of bitcoin by micro strategy, its price has also risen accordingly, from just over $10000 to nearly $50000. With the rise of bitcoin price, the share price of micro strategy has risen almost as much as the profit of bitcoin made by investors using the company, and investors are also betting heavily on this rising brand. But as bitcoin began to adjust in an unstable macro environment, the share price of micro strategy fell 58%. The chart shows that the parabola has now been broken, indicating that the correction is not nearly over. Comparing the trend of micro strategy stock price and bitcoin price, will the fate of bitcoin be affected by micro strategy effect? As for why micro strategies have been hit so hard, it may have been caused by the turmoil in the stock market, although the cryptocurrency market seems to have lost little. However, it could be a sign of the future. In the above figure, the orange line at the back of the micro strategy stock price chart is the bitcoin price curve. Although not every peak and trough follows this rule perfectly, the path is close enough, which indicates that there may be some correlation between them. If there is a correlation between the two, then either bitcoin is about to be revised by another 20-25%, or other factors are in the pipeline. As for other reasons for this difference, it may be that there is now more exposure to bitcoin in traditional markets than it was a year ago. Another possibility is that CEO Michael seller’s bitcoin buying spree may start to be seen by the public as irrational, with former believers now jumping jobs. Mr. Zeller is one of bitcoin’s biggest supporters, but he doesn’t always place his bets at the right time – although the direction he’s wagering in itself is positive. Michael seller was once considered the biggest loser of the Internet bubble, but eventually the Internet was widely adopted. In 2000, technology stocks plunged. In October of that year, the share price of MicroStrategy fell 92% from its peak, and seller’s personal assets decreased from $14.3 billion to $1.09 billion. Few people think bitcoin will eventually do the same thing, but will it happen again?

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