Strategy moves to reassure investors... "We won't sell Bitcoin"

Doohyun Hwang

Summary

Strategy said it sought to reassure investors by emphasizing that it will not sell Bitcoin.
It reported that if Strategy is excluded from the MSCI index, capital outflows on the scale of tens of billions of dollars could occur.
It said that expectations of an interest rate cut by the Federal Reserve have led to a partial rebound in Bitcoin prices recently.

As Bitcoin (BTC) approached Strategy's average purchase price of $74,430, the company stepped in to reiterate its long-term buying strategy and reassure investors. With Bitcoin's price decline and the possibility of exclusion from the MSCI index both weighing on investor sentiment, the move is seen as an attempt to stem market unrest.

Strategy said on the 21st (local time) via its official X, "In the winter of 2022, our average purchase price was $30,000 and Bitcoin fell to $16,000, but we bought more." It was a message to investors that there would be no selling from Strategy.

Recently Bitcoin fell intraday to the low $80,000s, increasing concerns over Strategy's valuation losses. Moreover, the prospect of Strategy being excluded from the MSCI index has been highlighted, leading to analysis that related measures to be decided in January next year could trigger capital outflows on the order of tens of billions of dollars. It is pointed out that this could be a burden on the crypto market, which has been in a prolonged slump.

However, sentiment has somewhat calmed in the short term. The possibility of an interest rate cut by the Federal Reserve (Fed) in December has increased, showing signs of a rebound in investor sentiment. Bitcoin, which had been pushed down to the low $80,000s the previous day, recovered to the $84,000 level on the day, partially recouping its losses.

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