bitcoin Price Correction: Macroeconomic Factors and MicroStrategy’s Unwavering Bet
Bitcoin (BTC) has experienced a meaningful price correction, following a recent all-time high. While the cryptocurrency market remains volatile, the current downturn is largely attributed to broader macroeconomic trends, sparking concern among investors.
Shrinking Global Money supply Fuels Bitcoin’s Fall
A key factor contributing to the Bitcoin price drop is the decline in the global money supply (M2). Financial expert Adam Kobeissi, in a recent post on X (formerly Twitter), highlighted a concerning trend. “The drop in the global money supply is significant and has historically correlated with Bitcoin price movements,” Kobeissi warned.
Kobeissi’s analysis reveals a staggering $4.1 trillion decrease in the global money supply over just two months, from $108.5 trillion in October to $104.4 trillion in December. this sharp contraction could exert considerable downward pressure on the cryptocurrency market. Historically, Bitcoin has shown a roughly 10-week lag in responding to such changes in the money supply.
According to The Kobeissi Letter,this global monetary contraction could potentially drive Bitcoin’s price down to $20,000. This would represent a dramatic 79% correction from current levels, reaching its lowest valuation since January 2023.
MicroStrategy Doubles Down on Bitcoin
Despite the bearish market sentiment, MicroStrategy, the business intelligence firm led by Michael Saylor, continues its aggressive Bitcoin accumulation strategy. In fact, their 2023 purchases have surpassed even those made during the 2021 bull market.
On November 24, MicroStrategy acquired an additional 55,500 Bitcoin at an average price of $97,000, a record-breaking purchase.Saylor remains bullish, famously stating, “Even at $1 million per Bitcoin, I’ll keep buying.”
MicroStrategy’s unwavering commitment has inspired other companies, including Bitcoin miners and firms like Metaplanet.Furthermore, MicroStrategy’s recent inclusion in the Nasdaq 100 index provides millions of investors with indirect exposure to Bitcoin through its stock.
Note: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries significant risk.
