Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Bets Backfire? MicroStrategy Shares Down 46%

Bitcoin Bets Backfire? MicroStrategy Shares Down 46%

CoinEditionCoinEdition2024/12/30 16:00
By:Anisha Pandey

MicroStrategy shares have dropped 46% in the last six weeks. The Maverick of Wall Street called MSTR a Ponzi scheme. MicroStrategy raised $6 billion in convertible notes to buy BTC with more money to come.

  • MicroStrategy shares have dropped 46% in the last six weeks. 
  • The Maverick of Wall Street called MSTR a Ponzi scheme.
  • MicroStrategy raised $6 billion in convertible notes to buy BTC with more money to come.

MicroStrategy, the largest corporate holder of Bitcoin (BTC), has seen a significant drop in its share price. MSTR has fallen 46% in the last six weeks, including an 8% crash on Monday, closing the year at $302.

Is MicroStrategy’s Bitcoin Strategy a “Ponzi Scheme”?

“The Maverick of Wall Street,” a finance and stock market expert, argues that MicroStrategy is running a “Ponzi scheme.” They claim the company dilutes its shares to pump Bitcoin’s price. MicroStrategy has raised $6 billion in convertible bonds to buy more BTC, with plans to add another $18 billion soon.

However, this strategy may be reaching its limit. Further diluting shares could harm the company, as “the requirement for an upside move in Bitcoin keeps going higher to compensate for diluting the shares.”

Read also : MicroStrategy Risks Mount if BTC Slips: Michael Saylor Eyes Trillionaire Tag

Bitcoin’s Price Performance and Outlook

Bitcoin itself has been on a downtrend since reaching an all-time high of $108,000. According to CoinMarketCap , it currently trades at $92,509.85, down 2.04% in the last seven days and 4.09% in the past month. However, BTC is still up 118.92% from last year.

Bitcoin Weekly Analysis

The weekly chart shows a Relative Strength Index (RSI) of 63.99 for Bitcoin. This suggests that bulls currently control the price action. However, the RSI trend hints at a potential long-term correction if bulls don’t step up.

Bitcoin Bets Backfire? MicroStrategy Shares Down 46% image 0 Bitcoin Bets Backfire? MicroStrategy Shares Down 46% image 1

The MACD indicator may also soon turn bearish. The MACD line (blue) is above the signal line (red), but they are converging. This could signal a bearish divergence in the near future.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!