Bitcoin in danger: The declaration that is causing the collapse of the Kryptonan market

Saltonade markets experienced a significant decline Monday. The prices of Bitcoin and Ethereum were initially recovered somewhat, stabilising over $90,000 (Bitcoin) and 3,000 (Ethereum), respectively. However, on Monday morning, Bitcoin was being traded at about $86,000, dropping by nearly five percent. Ethereum was about $2,800, a drop of nearly six per cent.

Negative feelings appear to be spreading to stock markets. Both DAX and S&P 500 have fallen into pre-market trading. Negative feelings seem to be affecting stock markets as well. DAX opened with losses, and S&P 500 has also fallen in pre-market trading. One major problem: many investors are buying cryptovaluta using credit backed by valuable letters. If Bitcoin as happened this morning it falls significantly in a short period of time, the cryptova peace exchanges could issue calls for margins for investors. These investors may then be forced to sell other assets to meet these requirements. Such technical sales may affect everything else even stock that has nothing to do with the correction of cryptovalus.

Focused Strategy

The cause of the price loss is not entirely easy to determine. Several reasons are cited: China reaffirmed its harsh stand on cryptova peacets, and a cryptova peacet platform was attacked by hackers. 

The loss of the price can also be linked to Strategy. Strategy made a name for himself as a so-called Bitcoin Treasure Company. This refers to a company whose only business goal is to buy and maintain Bitcoin. The company collects funds through various means, mainly by naming bonds and shares and by taking credit. 

For a time, this model was well received by investors, and Strategy's share price rose significantly. But it dropped just as significantly. Now, Strategy It's worth a little more than the Bitcoins the company owns. This raises the question: Who is assured? Strategy New capital? The company needs to pay off the promised interests and divisions. Theoretically, Strategy I can sell Bitcoin, but Strategy's brain, Michael Saylor, has ruled this out so far. 

Even more remarkable is the message from Strategy CEO Phong Le. In a post on Friday, he said Strategy may be prepared to sell Bitcoin if the company's value falls below Bitcoin's price.

“We can sell Bitcoin and do it in case of emergency”, Phong said.

Since Strategy holds almost 650,000 Bitcoin, a massive influx of young Bitcoin can flood the market in such a scenario for the prize. The psychological impact of breaking such a promise is not to be overlooked. And it's important to remember: Strategy is not the only treasure company. Other firms have adopted this pattern. They too are under pressure because of the drop in prices in the cryptocle market. 

Critical Layer for Bitcoin

Another problem for Strategy: They can be removed from the index M SCI World. M index provider The SCI has voiced doubts whether Strateg meets the necessary criteria without a real operational business. One exception can lower the share price by $2.8 billion, estimates JP Morgan, because ETF bidders following M SCI World would then sell their shares.

Bitcoin is now approaching $80,000. If this level is exceeded, the situation will become critical: the next level of support is only about $70,000.