Michael Saylor, CEO of the business intelligence company MicroStrategy, today in the WhatBitcoinDid podcast, described the $50 million investment by payment company Square in Bitcoin as “exceptional news”.
Let’s take a closer look at what’s behind this news.
We will also talk about a tweet from PlanB, which suggests that the Bitcoin share price may be on the verge of its next parabolic rise. Is the next BTC Bullrun just around the corner?
Bitcoin – a lifeboat for many people
Between August 11 and September 14, Microstrategy invested $425 million in Bitcoin. About three weeks later, on October 8, 2020, Square followed with a smaller investment. Now MicroStrategy’s CEO has weighed the latest Bitcoin bet.
According to Saylor, Square did not make this investment for financial reasons.
They do not need the money, they have more money than God.
Instead, their investment is something like a political or ethical statement. Saylor mentioned in the interview that there are 932 million people in 22 countries with collapsing currencies and described Bitcoin as a kind of lifeboat for these people. Square, in turn, “packaged this whole step with the agenda of ‘making the world a better place’.
I am pleased that this brings positive, constructive and inspiring energy to this space and I believe that only good things will come out of it.
Square’s investment may even prompt Twitter or Facebook to make similar Bitcoin investments.
There are a lot of people who will see Square as an exceptional, successful and progressive company and they will want to copy that, because who wants to argue with success?
Saylor has since praised Bitcoin’s long-term investment opportunities on several occasions. But given Square’s investment, Bitcoin’s potential could also attract short-term traders. He said that the “Fast Money Dudes” on Wall Street will think about pre-empting the next investor who follows the example of Jack Dorsey. This in turn, Dorsey said, can
promote an avalanche of wonderful things that happen and all add up to this simple statement: ‘Bitcoin is a good thing, it’s a safe thing and you might want some of it’.
The latter would undoubtedly result in a rising Bitcoin price. In terms of timing, it would currently fit well in any case. At least if you ask PlanB for their opinion on it.
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It is time for the next Bitcoin course Bullrun
The trade known for stock-to-flow under the pseudonym PlanB recently posted a tweet implying that the experienced analyst, according to his model, expects the Bitcoin price to move into its next parabolic growth phase very soon.
Possibly, PlanB’s analysis model and fundamental events are playing into their hands here. Headlines like the above and similar positive developments around Bitcoin could indeed be the harbingers of the next long-awaited Bitcoin course Bullruns. That a further parabolic price increase for BTC will follow is beyond question for many. For them it is not a question of whether, but when. Bitcoin price forecasts from $120,000 to $600,000 through the substitution of gold are widely accepted.
Whether or not the wish is the father of the idea is not to be discussed further at this point. In any case, PlanB’s forecasting model suggests that a further parabolic Bitcoin price increase will occur soon. The positive momentum that BTC currently has due to its breakout from the symmetric triangle we discussed fits this as well.
When events such as these add up, this causes many retail investors in particular to accumulate further BTC for fear that they might otherwise jump on the bandwagon too late. This in itself is already generating increasing demand and could have a positive effect on the price of Bitcoin in the short term.