Who will collapse first in 2025, Bitcoin or Bitcoin speculators?
MicroStrategy (NASDAQ: MSTR) has been the big winner this year; on the surface, it is a software company, but in essence, it is a Bitcoin speculator.
It issues stocks and bonds to raise money from investors, then buys Bitcoin, hoarding Bitcoin, relying on the price increase of Bitcoin to boost its own stock price. A perfect speculative closed loop, as long as Bitcoin can keep rising 📈
However, Bitcoin, as a typical super-speculative asset, has historically shown extreme volatility, with declines of 50-90% not being uncommon.
Recently, Bitcoin ETFs have started to see net outflows, as smart money takes profits at the peak.
The peak stock price of MSTR was on November 21, after which Bitcoin peaked on December 17, but MSTR's stock price did not reach a new high, and it has already fallen 35% from its peak. This shows that MSTR's stock speculators have already sold off, leaving many retail investors confused in the wind.
In 2025, it is uncertain how many retail investors and speculators will go bankrupt because of MSTR and digital currencies, jumping off buildings or into rivers.
400 years ago, Newton lamented after losing £10,000 in the South Sea bubble, saying, 'I can calculate the movements of the stars, but I cannot calculate the price of stocks.'
Human greed and fear are the underlying genes of financial markets for centuries.
