Posted on 06/13/2022 11:02:33 PM PDT by zeestephen
Bitcoin tumbled below $23,000 on Monday, hitting its lowest level since December 2020, as investors dump crypto amid a broader sell-off in risk assets. Meanwhile, a crypto lending company called Celsius has paused withdrawals for its customers, sparking fears of contagion into the broader market. [About one hour ago, Bitcoin was trading at $21,300. Since that low it has rallied back up to almost $23,000]
(Excerpt) Read more at cnbc.com ...
Margin Calls coming ...
“Turn those machines back on!”
(Bitcoin)
The only safe place for your money...
Or not.
Municipal bonds, Ted. We’re talking Double-A rating. Best investment in America.
At least they got a tulip out of it.
Turned out that was great advice when it was given in 1980.
Almost time to huy, No?
I wonder if a lot of financial houses used investments into Bitcoin for their clients retirement portfolios as in IRAs, 401k’s excetera... wow
Actually wish I’d done just that 20 years ago
And if your retirement depends on a good return on your savings, munis are a bad investment.
BTC futures hit a low of $20,875.
“clients retirement portfolios as in IRAs, 401k’s”
It is typically considered a failure of fiduciary duty to invest a retirement type portfolio in highly volatile and risky assets such as penny stocks, bitcoin, etc.
The company currently holds over $5.8 billion worth of bitcoin and has increasingly been raising debt as well as equity with the sole purpose of increasing its BTC holding. Bitcoin's bearish trajectory could prove disastrous for MSTR, especially if the coin price falls beneath $21,000, which would trigger a margin call, and close to bankruptcy.
In turn, MicroStrategy's (MSTR) bitcoin (BTC-USD) holdings are experiencing unrealized losses of over $1B, according to CoinDesk.
Since it began acquiring bitcoins (BTC-USD) in August 2020, MicroStrategy (MSTR) has accumulated a position size of 129,918 bitcoins via sales of junk bonds and convertible notes, CoinDesk noted. Amid bitcoin's slump, the company's holdings are now valued at less than $3B.
Meanwhile, it appears that MicroStrategy (MSTR) is taking measures to ease the pain of potentially further price depreciation in bitcoin (BTC-USD). The company "just transferred 2089 #Bitcoin ($48 million) to a new wallet for the first time ever, likely planning to dump their bags," CryptoWhale wrote in a Twitter post. "They're now moments away from facing the largest liquidation in history." The move comes despite MSTR CFO Andrew Kang in May saying its approach to buying and holding bitcoin won't change.
https://seekingalpha.com/article/4510285-microstrategy-bitcoin-bearish-trend-could-lead-downfall
https://seekingalpha.com/news/3848158-microstrategy-unrealized-bitcoin-losses-mount-to-over-1b-amid-crypto-rout
When a stock loses 50%, it get “cheaper”, because the ratio of it’s earnings and dividend to price gets better. But for a crypto asset like BTC that has no earnings or dividend, it never gets cheaper, no matter how much lower it goes.
You touched on the central debate over Bitcoin.
Is it an asset, like stock?
Or, is it a medium of exchange, like a sovereign currency?
To me, it is a currency, and its value is exactly equal to the degree of confidence that savers, consumers, and business owners have in it.
About 6 months ago it was worth almost 3 times what it is today.
it’s not a currency......what can you buy with it without first converting it to $$ ?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.