In the current cryptocurrency market, Bitcoin, as one of the most popular digital currencies, has always attracted the attention of investors. However, the recent fluctuations in Bitcoin prices have attracted widespread attention, especially the news that nearly 130,000 Bitcoins have fallen below the cost price. At the same time, MicroStrategy said it does not intend to sell its Bitcoin holdings, and this decision has sparked heated discussions in the market. So, why did MicroStrategy choose to stick to it at this time? What kind of market logic and investment strategy is hidden behind this?

The price fluctuation of Bitcoin has always been the focus of investors. Since the advent of Bitcoin in 2010, its price has experienced many dramatic fluctuations, with both a thousand-fold increase and a sharp drop. Especially in 2021, the price of Bitcoin once exceeded $60,000, attracting a large number of investors. However, with the adjustment of the market, especially the increasing uncertainty of the global economy, the price of Bitcoin began to fall back, even falling below the cost price of many investors.

In this context, the price of nearly 130,000 bitcoins fell below the cost price, which means that a large number of investors may face losses. This phenomenon not only caused panic in the market, but also made many investors begin to re-examine their investment strategies. As a company known for its bitcoin investment, MicroStrategy's decision not to sell bitcoins is obviously in sharp contrast to the general market sentiment.

Michael Saylor, the founder of MicroStrategy, has made clear his firm belief in Bitcoin in several public speeches in the past. He believes that Bitcoin is not only a digital asset, but also a tool for storing value. In his view, the global economy is experiencing a wave of currency depreciation, and Bitcoin is the best choice to cope with this depreciation. Therefore, despite the pressure of falling prices, MicroStrategy still insists on holding Bitcoin, showing its confidence in the future market.

From a macroeconomic perspective, the uncertainty of the current global economic environment does have an impact on the price of Bitcoin. The Fed's interest rate hikes, inflation, and geopolitical tensions have all suppressed Bitcoin's upside to a certain extent. In such an environment, many investors began to choose to sell their Bitcoin to mitigate losses. However, MicroStrategy's approach is a reverse thinking, and it chose to continue holding at this time. This strategy not only reflects the company's top management's confidence in the future of Bitcoin, but also reflects its long-term investment strategy in market fluctuations.

It is worth noting that MicroStrategy is not the only company that chooses to hold firmly when the price of Bitcoin falls. Many large institutional investors have also increased their investment in Bitcoin at this time. For example, Tesla, Square and other companies have chosen to increase their holdings when the price of Bitcoin fell. This phenomenon shows that despite the sharp fluctuations in the price of Bitcoin in the short term, in the long run, institutional investors are still optimistic about the future development of Bitcoin.

In the Bitcoin market, investor psychology plays an important role. When market sentiment is low, many people will choose to sell in order to protect their capital. However, as MicroStrategy has shown, firm investment beliefs and long-term strategic vision often create greater value in market fluctuations. This is not only a belief in Bitcoin, but also a persistence in one's own investment strategy.

As Bitcoin becomes more popular, more and more investors are beginning to participate in it. However, investing in Bitcoin is not easy. Many novice investors may feel overwhelmed by price fluctuations and even make wrong decisions. Therefore, when investing in Bitcoin, it is particularly important to understand market dynamics and master investment strategies. MicroStrategy's decision provides investors with a valuable reference: when the market is down, staying calm and sticking to your investment philosophy may reap unexpected returns in the future.

In this context, the technical characteristics of Bitcoin are also worth paying attention to. Bitcoin uses decentralized blockchain technology to ensure the security and transparency of its transactions. The advantages of this technology have made Bitcoin widely used around the world, especially in cross-border payments, asset management and other fields. As more and more companies and institutions begin to accept Bitcoin, the market's recognition of it is gradually increasing. This lays the foundation for the future development of Bitcoin.

In general, although the volatility of Bitcoin prices makes many investors feel uneasy, the choice of MicroStrategy undoubtedly provides us with an important perspective. When the market is down, maintaining confidence and adhering to investment concepts may bring greater opportunities in the future. Whether as an investor or an ordinary user, we should seriously consider the position of Bitcoin in the future economic system and how to find our place in this volatile market.

At the end of this article, let's think about this: In a market full of uncertainty, what is the real value? Is it short-term profit or long-term belief? The decision of Micro Strategy provides us with an important revelation: in a volatile market, belief and strategy are our real wealth.

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120BTC.com News: Although Bitcoin has fallen by more than 50% since its peak, MicroStrategy CFO Andrew
Kang still said on May 18th (U.S. time): He will not sell Bitcoin, and his long-term strategy of buying and holding Bitcoin will not change.
MicroStrategy currently holds 129,218 bitcoins, spending a total of $3.97 billion, with an average purchase cost of $30,700 per bitcoin. At press time, the bitcoin price was $29,126, with a book loss of $203 million.
Andrew, Chief Financial Officer of MicroStrategy
Kang said in an interview that MicroStrategy is under no pressure to sell Bitcoin assets, and that our investors agree with our strategy. He also said that he would monitor the price of Bitcoin, but declined to comment on whether he would buy it in the recent market decline.
Andrew Kang believes that the recent volatility of Bitcoin is due to some activities outside of Bitcoin, but MicroStrategy believes in the fundamentals of Bitcoin and there is nothing that goes against its strategy.
In the past, MicroStrategy continued to raise funds by issuing bonds, selling stocks, and borrowing money by pledging Bitcoin to buy Bitcoin.
LOSSES WILL BE REFLECTED IN FINANCIAL STATEMENTS
MicroStrategy has a lot of experience in incorporating Bitcoin into financial reports. In the past, it even launched courses for companies to teach how to purchase digital assets and prepare financial reports. However, digital assets do not have independent items in fair accounting principles, but are included in intangible assets. Taking Bitcoin as an example, MicroStrategy must record the reduction of asset value based on market value, but when the market value rises, it can only record gains when it is sold. Since MicroStrategy's average cost has shown a loss, it will also be shown in the financial report at that time.
Financial services company Jefferies
Analysts at the MicroStrategy Group commented that if MicroStrategy improves the operation of its software business, it will not be able to continue to buy more Bitcoin. Even if there is a Bitcoin investment strategy, it is obviously not helpful to the company's finances.
MicroStrategy is also encouraged by the fact that Biden's cryptocurrency regulatory framework group, the Financial Accounting Standards Board (FASB), will discuss adding accounting items for cryptocurrencies. If Bitcoin rebounds in the future, it will be beneficial for MicroStrategy's financial reporting under fair accounting principles.