Bitcoin buying strategy from MicroStrategy could be Bitcoin’s biggest crisis
Since MicroStrategy first purchased 21,454 bitcoins in August 2020, its holdings have increased to 553,555, with an average cost of approximately US$68,478.47 and a total investment of more than US$33 billion.
The company continued to buy regardless of the market cycle. For example, it purchased a large amount of Bitcoin at the top of the bull market in 2021, but sold 704 coins at the bottom of the bear market in December 2022 due to lack of funds.
This strategy of "ignoring market cycles" stems from Executive Chairman Michael Saylor's extreme belief in Bitcoin, and also reveals that MicroStrategy's cash flow reserves are insufficient. The coin selling incident in 2022 exposed its liquidity crisis. At present, its holdings account for more than 2.5% of the total supply of Bitcoin. If due to funding pressure, it will sell when Bitcoin falls to a low point, which may trigger a series of market liquidations and violent fluctuations.
Also on Wall Street, Mr. Buffett’s investment philosophy may be more stable.
Buffett is preparing to retire, and after making a 5 million-fold profit, he still insists that Bitcoin is rat poison.
Berkshire Hathaway always holds tens of billions of dollars in cash reserves, which reached as high as $300 billion in 2025 to deal with market fluctuations or emergencies.
In contrast, MicroStrategy's "all-in Bitcoin" strategy lacked a cash buffer, forcing it to sell coins in the bear market of 2022. Buffett's conservative strategy ensured long-term financial stability, while MicroStrategy's aggressive approach brought excess returns in the bull market, such as a 337% increase in stocks in 2023, but magnified risks in the bear market.
On the other hand, after creating the myth of Berkshire's 5 million-fold surge in 50 years, Buffett, a 94-year-old man, is preparing to retire. Before retiring, he still regards Bitcoin as an "asset with no production value" and rat poison!
The good news is that the old man no longer says that Bitcoin is a rat shit. From shit to medicine, its value is also increasing. Anyway, Bitcoin does not need to change the old man, it only needs to change time.
CZ believes that Bitcoin will be between $500,000 and $1 million in this cycle!
Financial giants are suppressing the market, and industry giants are rushing to buy more to hedge. CZ predicts that this cycle may be between $500,000 and $1 million.
When talking about the crypto industry, CZ pointed out that although the market has paid more attention to Memecoin recently, he is more optimistic about the combination of blockchain with artificial intelligence, scientific research and other fields, and predicts that decentralized exchanges (DEX) will surpass centralized exchanges (CEX) in the future.
In addition, CZ also talked about his prison life. When he was with the murderer, CZ missed home even more. No matter which wife CZ's home is, the bull market of the industry is CZ's eternal home. Come and pull up the market!
This week's FOMC meeting will be a blind spot, will there be a rate cut?
The Federal Reserve policy meeting on May 8 has attracted much attention, and the market is looking forward to a signal of a rate cut. However, inflation is not yet fully under control, and the economy has not shown signs of collapse, so the possibility of a rate cut is low. The market has already priced in a 99% chance that there will be no rate cut, so even if the news is that there will be no rate cut, it may not affect the price of Bitcoin too much.
However, from a technical perspective, $91,500 is the most critical support for Bitcoin. If it fails, it may fall to $89,500 or lower. However, the long-term trend is still bullish, and we will still focus on buying at low prices.
Asian economic data and European monetary policy will also have an impact on the cryptocurrency world
On May 9, China will release trade data that will reflect the impact of Trump's 145% tariff policy on the economy. A continued trade war could lead to deflation in China, and inflation data on May 10 will provide further clues.
Other Asian countries such as Indonesia, Thailand and the Philippines will also release economic growth and consumer price data, and tariff risks may prompt regional central banks to further cut interest rates. The crypto market is closely related to the global macroeconomy, and the slowdown in the Asian economy may weaken investors' risk appetite, which is not good news for Bitcoin prices.
Meanwhile, good news came from Europe. The British pound rose to a three-month high, and the FTSE All-Share Index rose 10% in four weeks. The market expects the Bank of England to cut interest rates by 25 basis points on May 8, and the Swedish Central Bank may act in tandem. The European Central Bank has cut interest rates seven times in a row, and may cut interest rates for the eighth time next month.
Why did Litecoin suddenly plummet? It turns out that the ETF was blocked
The SEC recently postponed the approval of the Litecoin ETF and solicited public opinions, citing concerns about market fraud and manipulation. This news caused the Litecoin price to plummet by 8%, and market sentiment deteriorated rapidly.
The ETF is considered the "most promising altcoin ETF to be approved", and the market's prediction of a win rate was as high as 85%. The SEC's decision interrupted investors' optimistic expectations and highlighted the regulator's cautious attitude towards the altcoin market. Litecoin prices are under pressure in the short term, and investor confidence has been frustrated. We need to pay close attention to the progress of subsequent approvals and market reactions.
Finally, here’s some “not so serious” news from the cryptocurrency world, some serious “gossip”.
Sun Ge said that Ethereum will increase 10 times
Sun Ge predicts that Ethereum will rise 10 times in the coming months and break through $5,000. This prediction coincides with Ethereum’s tenth anniversary.
SHIB and DOGE rose. However, its history of shouting orders has also caused controversy. People have not forgotten that "Sun Ge's smile can lead to life and death", so it is recommended to be cautious. Currently, the price of Ethereum is around $1,810, and the market has a cold reaction to its recent upgrade. If it falls below the key support level, it may further drop to $1,700. In short, predictions with only results but no reasons should not be blindly believed, but I look forward to being slapped in the face. After all, which old leeks don't have a few ethers!