- MicroStrategy shares have dropped 46% in the last six weeks.
- The Maverick of Wall Street called MSTR a Ponzi scheme.
- MicroStrategy raised $6 billion in convertible notes to buy BTC with more money to come.
MicroStrategy, the largest corporate holder of Bitcoin (BTC), has seen a significant drop in its share price. MSTR has fallen 46% in the last six weeks, including an 8% crash on Monday, closing the year at $302.
Is MicroStrategy’s Bitcoin Strategy a “Ponzi Scheme”?
“The Maverick of Wall Street,” a finance and stock market expert, argues that MicroStrategy is running a “Ponzi scheme.” They claim the company dilutes its shares to pump Bitcoin’s price. MicroStrategy has raised $6 billion in convertible bonds to buy more BTC, with plans to add another $18 billion soon.
However, this strategy may be reaching its limit. Further diluting shares could harm the company, as “the requirement for an upside move in Bitcoin keeps going higher to compensate for diluting the shares.”
Read also : MicroStrategy Risks Mount if BTC Slips: Michael Saylor Eyes Trillionaire Tag
Bitcoin’s Price Performance and Outlook
Bitcoin itself has been on a downtrend since reaching an all-time high of $108,000. According to CoinMarketCap, it currently trades at $92,509.85, down 2.04% in the last seven days and 4.09% in the past month. However, BTC is still up 118.92% from last year.
Bitcoin Weekly Analysis
The weekly chart shows a Relative Strength Index (RSI) of 63.99 for Bitcoin. This suggests that bulls currently control the price action. However, the RSI trend hints at a potential long-term correction if bulls don’t step up.
The MACD indicator may also soon turn bearish. The MACD line (blue) is above the signal line (red), but they are converging. This could signal a bearish divergence in the near future.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
