......Then you're a big fool
So social media is abuzz with Microstrategy currently losing $10M from their investment in BTC and everyone seems to be losing their minds and calling for the end of time.
This is classic bear market vibes like we've seen in previous market situations, and I wonder why a lot of people are still like this.
For one, if you didn't expect this dump then you're a fool, secondly if you thought this year coupled with the last is a still a bull run year, when you're an even bigger fool, as I've said before.
Now back to Microstrategy.
It's rumored that they obtain loans to buy BTC, I'm sure there's a hedge or collateral somewhere, but still, no one talks about the fact that an organisation will borrow money to actually purchase BTC.
Don't get me wrong, it's not a bad business model. BTC is the most trusted digital asset of the 21st century, but we don't need a seer to tell us that Saylor is taking a lot of risks and reminds me of FTX in 2022.
Now if they're taking a loan and hoping to pay back these loans from making profit, then how are they not selling when the market is completely green.
I don't want to sit somewhere imagining that Saylor is a rogue billionaire, I want to think he's a smart guy who's doing extra risky thing mostly to take advantage of whatever BTC futuristically becomes, and I want to think he's not doing all these for short term gains, but if they don't understand when to sell to take profit and pay back their loans whatsoever then the whole arrangement might bite them back in the short run.
My point is, of this is indeed borrowing loans to buy BTC, then they have to learn to start buying at the bottom and perhaps selling some percentage at the top especially if their goal is to own a sizeable percentage of BTC supply in the future.
The 32 BTC they sold lately didn't seem like a bright idea for a tech company like they are. They probably need to benefit in the short run even though they're not in profit always (which is expected, especially in a red market).
I may be thinking like a person burned by the market, and they're probably not thinking like the way I am, but I still maintain that you need to secure gains in the short term even though you have a different goal in the long run, especially since they're getting loans and don't have billions of dollars stored somewhere.
Although I still think 99% of people have timing problems when it comes to crypto, and this is always the problem with being an investor or being a holder, and that's knowing when to sell, hold or buy. If up to 5 or 10% or even didn't have this problem then crypto would have onboard more people.
$2M long in BTC
Yesterday someone said that they lost $2M in BTC long, and that it was virtually their life savings. I don't know if they hedged that money, but longing BTC when we're actually in a year where BTC was historically supposed to dump is one of the most irrational thing ever, but I won't blame him that much.
I think we've all been there: irrational, misjudged timing and many weird stuff. There are no professional when it comes to crypto. Even extremely rich people can make stupid decisions, and Saylor and his company is not an exception, no matter how much they have earned or made.
By 2028 they'll have only experience two full cycles since they started buying BTC six years ago, which means they're also pretty much very young in the crypto market, and this means they'll make a couple more mistakes.
MicroStrategy chose the wrong time to sell, especially if you borrowed the cash to purchase it in the first place. Eventually it will bounce back, and likely hit higher highs, but they might have been strapped for cash and needed the money?
Taking a long position on BTC this year is insanity, small shorts would make more sense. But to lose two million dollars on that kind of bet was a dumb move. Oh well...
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It's literally the bear market cycle period, I'm buying up as much as u can under 70K but when it's above 70K I don't & skip that week and instead buy extra gold. The MS scammy stocks are so dumb. It’s gonna get worse! I look forward to 49K Bitcoin or so! I’d guess we bottom between 42K & 45K area later this year or early 2027. Hive will keep going down as it did even when Bitcoin surged 850% from 16K in November 2022 to 116K October 2025. Hive crashed from .26 cents to sub dime same period. The people saying hive will go up when BTC does are fools.
It's wild seeing people here on Hive in other posts & comment sections still shilling hive is fine.
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Yeah. I think since they've been buying from 2020, it was only logical for them to actually sell a year ago to pay off their debts instead of to panic sell like they've done. It's very simple: sell at the ATH since BTC is guaranteed an ATH almost every 3 years. Then they can always buy at the ATL when the price is rather cheap to enter the market.
Just Imagine you're Holding 100 BTC , what will be your next move?
Same as every cycle. It's just following normal cycle. Alt coin cycle structure ended when most crashed during last bitcoin bull cycle but bitcoin cycle still exactly in place. We'll see a low next 12 months and a new high in late 2028 or 2029.
That is going to be great;
They should have taken profits when prices were high, and I think it was to be expected that they would sell off some BTC to pay off those loans. It's just a bad business strategy.
Yes, if they were buying with loans, all they could have done was sell at 100k and actually paid because the loans, they problem don't understand the profit taking thing like many of us, still.
Probably they found something more worth that a stop loss was recoverable, these kind of society don't go blindly from a boat to an other
I think it's timing. They buy whenever they get money instead of trying to buy when prices are low.
I think it's just the same regular mistake/thing with regular people like us: panic sell when it's dumping, but never sell when it's pumping.
Was so obvious, we ain’t seen nothing yet! .03 Hive coming, & 48K bitcoin soon.