This week Bitcoin (BTC) price came within a hair of the $36,000 mark, before abruptly reversing course and correcting to $34,250. After a near 30% run over the past month, it is natural for the price to cool off as some traders take profit and market participants evaluate whether or not the catalysts for the rally remain valid.
Despite the intra-day price action, which saw a 4.67% drawdown, a number of analysts remain bullish on Bitcoin, and some expect another “gamma squeeze” if BTC price manages to push through the $36,300 level.
Perma-bulls like MicroStrategy CEO Michael Saylor appear unbothered by the whipsaw price action, and on Nov.1, MicroStrategy announced the purchase of 155 BTC for $5.3 million in October.
In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5pm ET as we discuss our Q3 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/w7eRUcGobi
— Michael Saylor⚡️ (@saylor) November 1, 2023
When asked about the upcoming Bitcoin halving during an interview with CNBC Squawk on the Street host Sara Eisen, Saylor said,
“Most of the natural sellers of Bitcoin in the market right now are Bitcoin miners, and they have to sell to cover their electricity bills and capital costs and retire their debt. That’s about a billion dollars per month worth of selling into the market. The protocol forces that to be cut in half as of next April, or late April.”
Considering the impact of the halving on selling and demand, Saylor said,
“So you’re going to see $12 billion of natural selling per year converted to $6 billion of natural selling a year. At the same time as things like spot Bitcoin ETFs increase the demand for Bitcoin. So that’s why all of us are fairly bullish over the next 12 months. Demand is going to increase, and supply is going to contract and this is fairly unprecedented in the history of Wall Street.”
Now is a ‘pretty ideal entry point’ for Bitcoin
To date, Bitcoin price has gained 114%, 30% of which was added in the last month. Despite these gains, the price remains nearly 50% down from its all-time high, and the average person is likely to have memories of the FTX implosion and other crypto scandals in their mind before considering BTC’s performance in 2023.
When asked whether he believed the well of institutional investor interest had been poisoned by “bad and dark applications…