A Bitcoin super whale that only consumes and does not spit out, MicroStrategy, after being included in the Nasdaq 100, ended its consecutive 12 weeks of purchases. The market speculates that it is constrained by related rules and regulations and faces a massive tax bill of 19 billion USD on unrealized Bitcoin gains, requiring financial planning to avoid taxes.
Looking at the latest data, as of now, MicroStrategy has held 471,107 Bitcoins, with a total purchase cost of approximately 30.4 billion USD and a total holding value of about 46.2 billion USD, with an average purchase price of around 64,511 USD, which is not inferior to BlackRock's total holding value of 57.7 billion USD.
MicroStrategy has been continuously purchasing for many years through stock issuance, equity financing, debt financing, and convertible bonds in a left foot stepping on the right foot manner. Although its long-term fundraising plan indicates that it may continue to increase holdings in the future, if Bitcoin prices face a steep decline, being forced to sell coins to pay debts will no longer be a novel situation.
David Sacks, the crypto head of the White House, stated at the leadership program meeting in the U.S. digital asset sector that the Bitcoin strategic reserve is progressing, but he could not answer whether 'sovereign wealth funds hold crypto'. The market is disappointed in the short term, but the high specification of the meeting and the commitment to legislative clarity in the crypto space is a good thing in the long run, resembling a press conference by the East.
Federal Reserve Board member Jefferson: There is no need to rush further interest rate cuts; a strong economy makes it appropriate to proceed cautiously.
In response to multiple Chinese ministries taking measures such as tariffs and investigations against American goods and enterprises, the trade war is a self-inflicted wound that harms oneself while hurting the enemy. It has always been a blow to risk assets, and gold has continuously set new highs.
The most interesting drama today is the feud between Sun Yuchen and Li Lin. Sun claims that when acquiring Huobi, Li Lin concealed due diligence materials, creating a 30 million USD hole internally and then playing dirty after the fact, refusing to pay a dime, and filled it himself. Li Lin responded today, saying that financial compensation has been made, and there is no so-called 'funding hole'.
In fact, this 30 million USD is the so-called money owed by users to the exchange. The exchange did not liquidate in time, resulting in users being 'underwater', and the exchange cannot recover it, so it can only be considered bad debt. Sun hasn't mentioned specific details regarding this bad debt, but has once again emphasized that the 30 million USD is simply not given, pending further revelations to expose the insider trading of squeezing retail investors 😂
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On the technical side, after a peak and retreat near 10.2k, it has temporarily stopped falling around 96k. It has been mentioned multiple times in the past few days that here, it is highly probable that at least a 4-hour level central pivot or even a 1D level central pivot is needed for a breakthrough. As shown in the figure for the 4-hour level: Short-term, just oscillate back and forth around the support and resistance of the central area. For those who only do trends, this is wasted time; be patient and wait for the final move to form. (Personally inclined towards the green trend type)
After closing at 8 AM this morning, the daily level 'CharlesK7 Trend' indicator still indicates a bullish trend. Still the same saying: 'Short-term speculation is acceptable, but the overall pattern should not be overlooked.'
20250205 by CharlesK7
