Emily Walker
In a recent discussion on CNBC, Michael Saylor, the founder and chairman of MicroStrategy, likened Bitcoin (BTC) to New York City, dubbing it “cyber Manhattan.”
‘Every Day Is A Good Day To Buy Bitcoin’
Saylor shared his optimistic long-term view on Bitcoin, stating, “We’ll just keep buying the top forever; every day is a good day to buy Bitcoin.” He compared his investment strategy to acquiring Manhattan real estate over the centuries:
I would have purchased Manhattan a century ago, 200 years ago, and every year for the past 300 years. You may pay slightly more than the previous buyer, but it’s always wise to invest in the economic heart of the world.
These comments come as MicroStrategy prepares for its planned inclusion in the Nasdaq-100 on December 23, which will establish it as a Bitcoin proxy within the widely-followed Invesco QQQ Trust ETF that reflects the Nasdaq-100’s performance.
Since 2020, MicroStrategy has been steadily acquiring Bitcoin, using its balance sheet to fund these purchases through convertible notes. The company intensified its buying spree after the recent US presidential election, completing six consecutive weeks of BTC acquisitions.
On Monday, Saylor announced that MicroStrategy had bought an additional 15,350 BTC, increasing its total holdings to an impressive 439,000 BTC, valued at around $46 billion.
In addressing the criticism labeling MicroStrategy’s Bitcoin purchasing approach as a “Ponzi scheme,” Saylor compared it to real estate development in Manhattan, explaining:
Just like Manhattan developers, when real estate appreciates, they take on more debt to build additional properties. This has contributed to the skyscrapers in New York City for 350 years. I view it as an economy.
Market Caution Grows
Recently, the leading cryptocurrency reached a remarkable peak of $107,850, fueled by a 10% price surge and a 25% uptick in Bitcoin’s trading volume. This has rekindled bullish sentiment among investors.
However, crypto analyst Ali Martinez tweeted that 62.6% of traders with open BTC futures on Binance are currently betting against the asset.
This trend might initiate a liquidity hunt to liquidate those short positions, possibly leading to upward movements; however, it also signifies trader caution, as many expect a possible downturn for Bitcoin.
It’s uncertain if the past resistance level at $101,000 has now become a support level amidst bullish activity. If it does hold, this could allow for further exploration of price levels as the year concludes.
Image from DALL-E, chart provided by TradingView.com