This morning’s financial markets opened with Michael Saylor’s manifesto. Against the backdrop of red charts and panic across social media, MicroStrategy’s founder published a succinct post stating that Bitcoin is the ultimate hedge against disruption.
But are markets ready for this idea now that disruption is more real than ever?
Metals drop as Bitcoin faces heat
The correlation between assets and crypto assets can be difficult to understand, even for experienced market participants. Amid inflation shocks and soaring oil prices, traditional safe havens have failed to live up to expectations. Silver suffered a dramatic 10.23% collapse, gold fell 5.47%, and Bitcoin is also under pressure, despite being protected from the disruption Mr. Saylor has promoted.
Today, Bitcoin price fell to $69,190, down more than 8.5% in the past 24 hours. Just yesterday, ahead of the FOMC meeting, Bitcoin reached the $76,000 level. Policy uncertainty and rising geopolitical tensions are causing investors to flock to the US dollar, ignoring virtually all other assets.
While the audience hesitates, Saylor continues to play aggressively. MicroStrategy’s reserves remain at 761,068 BTC. The average purchase price was $75,696, and at current market prices, the Strategy Portfolio is in the red with an unrealized loss of 8.44%.
Mr. Saylor remains committed to his strategy. MicroStrategy’s mNAV is trading at a discount of 0.851, so he sees it as a rare entry opportunity and protection from disruption rather than a collapse.
