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In a recent interview with CNBC, Michael Saylor, founder and chairman of MicroStrategy, drew an interesting parallel between Bitcoin (BTC) and New York City, referring to the market’s leading cryptocurrency as “cyber Manhattan.”
‘Every Day Is A Good Day To Buy Bitcoin’
Saylor expressed a long-term bullish outlook on Bitcoin, stating, “We’ll just keep buying the top forever; every day is a good day to buy Bitcoin.” Mcrostategy’s co-founder likened his investment philosophy to that of purchasing real estate in Manhattan over the past few centuries:
I would have bought Manhattan 100 years ago, 200 years ago, every year for the past 300 years. You pay a little bit more than the person who bought Manhattan before you, but it’s always a good investment to invest in the economic capital of the free world.
Saylor’s remarks come ahead of MicroStrategy’s anticipated inclusion in the Nasdaq-100 on December 23. This inclusion will also position MicroStrategy as a Bitcoin proxy within the popular Invesco QQQ Trust ETF, which tracks the performance of the Nasdaq-100 index.
Since 2020, MicroStrategy has been aggressively accumulating Bitcoin, leveraging its balance sheet to finance further purchases through convertible notes. The company ramped up its buying activity following the US presidential election with six consecutive weeks of BTC purchases.
On Monday, Saylor also announced that MicroStrategy had acquired an additional 15,350 BTC, bringing its total holdings to an impressive 439,000 BTC, valued at approximately $46 billion.
However, Saylor also addressed critics who have labeled MicroStrategy’s Bitcoin acquisition strategy as an alleged “Ponzi scheme.” He countered this criticism by drawing a parallel to real estate development in Manhattan, stating:
Just like developers in Manhattan, every time real estate goes up in value, they issue more debt to develop more real estate. That’s why your buildings are so tall in New York City; it’s been going on for 350 years. I would call it an economy.
Market Caution Grows
Over the past 24 hours, the leading cryptocurrency has reached a new all-time high of $107,850, driven by a 10% surge in price and a 25% increase in trading volume for Bitcoin. This impressive performance has sparked renewed confidence and bullish sentiment among investors.
However, crypto analyst Ali Martinez recently shared on social media platform X (formerly Twitter) that 62.6% of traders on crypto exchange Binance with open BTC futures positions are currently shorting the asset.
While this trend could trigger a liquidity hunt aimed at liquidating these bearish positions, with potential moves to the upside, it also reflects a sense of caution among traders who anticipate a potential downturn for the largest cryptocurrency..
Yet, it remains uncertain whether the previous resistance level at $101,000 has been established as support by bullish traders. If this level holds, it could pave the way for further price discovery as the year draws to a close.
Featured image from DALL-E, chart from TradingView.com
