What Happens If MicroStrategy Dumps All Its Bitcoin?

[maydna]

With that type of thought process, no company would survive, which is why they would never do that or the chances are very slim. But even if they do, someone will buy and that will raise the price back upwards again.

Understand that dumping means selling at a price lower than the market price to get rid of that asset as soon as possible. If someone offers bitcoin at 500$/BTC, someone will buy it and then they will sell the same at raised price. That buyer might not want to sell them right away as well. So a lot of possibilities are there and the market crashing away is only transient and a wet dream for those who are waiting for it.

Yep, if MS wanted to do something like that, they wouldn't do it in one swift go - they will probably prolong the period in which their BTCs would be dumped.

And then again.. the reason to do so would be very sharp for them, to say the least.

They will sell only when they think that will give profit to them. No company want to loss from their assets. So they will not risk to sell or even dump so hard because that will make their company shake or bankrupt.

Those people who wait for a low price will always be ready to buy especially if the price is down deeper than the last correction. But is MS really dump their Bitcoin at once, that can make massive panic to those who can not hold tight their Bitcoin. They will lose control and will follow selling their Bitcoin because they are not ready to see the dump.

[kotajikikox]

I wouldn't panic if Microstrategy, decides to dump all it's Bitcoin because I believe that the impact will be for a short term. Bitcoin has always recovered when it's hit by any major dump, we have seen it happen in the past and it'll continue to happen in the future.

It would be a problem for those who has put their money into bitcoin but would need it immediately after if microstrategy does sell their bitcoins and the price comes crashing down. Obviously, the ideal situation for me is if I manage to sell my bitcoin before the dump then buy more bitcoins with the money but that seems impossible.

What is important is that the adoption of Bitcoin is increasing and many investors are getting in, both retail and institutions. With the potentials of Bitcoin as a store of value I don't think that an institution like Microstrategy, will dump it's stash on the market. Bitcoin has made a name for itself as an asset that will continue to be profitable on the long term so nobody will want to selloff.

Well microstrategy keeps buying. I do not think they will sell it any time soon especially with new companies coming up and everyone saying how these companies will be threatening microstrategy as they might have more now. Microstrategy has seen a lot of bitcoin, they have been here a long time and it will take a lot for them to sell their bitcoin.

[melinoe]

They will sell only when they think that will give profit to them. No company want to loss from their assets. So they will not risk to sell or even dump so hard because that will make their company shake or bankrupt.

Those people who wait for a low price will always be ready to buy especially if the price is down deeper than the last correction. But is MS really dump their Bitcoin at once, that can make massive panic to those who can not hold tight their Bitcoin. They will lose control and will follow selling their Bitcoin because they are not ready to see the dump.

If MS drops their BTCs, they probably won't think about others and what they think, they will think only about themselves Because the situation would be so bad, it needs to be done.. But I don't see such a situation happening anytime soon.

[Polkeins]

What if MicroStrategy decided to sell all of its Bitcoin?

Could that be a black swan event?

The very thought is unsettling.

What if institutional investors, like retail traders in the past, are hit by BTC FUD and choose to panic-sell all their holdings?

Do you see this as a realistic possibility in the future, or am I overthinking it?

Right now, Strategy is the largest holder of Bitcion among companies by a wide margin and only BlackRock has roughly the same holdings as Strategy.

For Michael Saylor, bitcoin is a “gold mine” because bitcoin has brought him tens of billions of dollars in profit, still “paper profit”, but now Saylor is borrowing money for future bitcoin purchases and doing it at a very low rate, hoping for growth in the future and while the profit from bitcoin purchases brings Saylor the main money, because his main business Strategy on selling software brings at most hundreds of millions of dollars and compared to bitcoin is a couple of percent in the total profit Strategy.

So selling bitcoins to Strategy is essentially economic suicide and the only thing Saylor has to worry about is the average purchase price, which went from 20k last year to almost 69k this year, which means that a 20-30% drop in bitcoin would put Strategy in a very vulnerable position.

[Outhue]

What if MicroStrategy decided to sell all of its Bitcoin?

Could that be a black swan event?

The very thought is unsettling.

What if institutional investors, like retail traders in the past, are hit by BTC FUD and choose to panic-sell all their holdings?

Do you see this as a realistic possibility in the future, or am I overthinking it?

There is a hidden agenda behind it, this is the first thing that will come to my mind, the time of the period they plan to do this also matters, these people are investors too and they have to make profits.

Also, since they have a large bag of Bitcoin they can easily manipulate the price so that other investors like you can sell and guess what? They will buy everything back again, this time at a lower price.

I think a time will come when this will happen, because if they don't do so how will they cause massive panic in the market? Have you not heard that the greatest profits are made in the war times?

[r_victory]

If it is not related to a global crisis, a general ban on cryptocurrencies or something similar, there may be some initial panic in the market and perhaps a sharp drop in price. But the coins will return to circulation and there will still be a lot of demand for bitcoin, and it is possible that other large institutions will buy it, as well as small investors.

[JiiBs]

If it is not related to a global crisis, a general ban on cryptocurrencies or something similar, there may be some initial panic in the market and perhaps a sharp drop in price. But the coins will return to circulation and there will still be a lot of demand for bitcoin, and it is possible that other large institutions will buy it, as well as small investors.

There would be panic for sure, people would ask the question on why…, the reason why is what would determine a chain of other reactions. If there isn’t anything wrong with the technology itself, then you we would have to endure a short bearish season that would stabilize real soon too. In fact, it would create an avenue for people to buy in at a good price, that’s one thing I know would happen. Then when Bitcoin is back to its glory days, they would be history.

[batang_bitcoin]

Do you see this as a realistic possibility in the future, or am I overthinking it?

You are not overthinking, there is a possibility that they will do that. I remember when it's all over the news when Tesla has purchased their Bitcoin holdings and then it didn't took them long until they have sold most of it if not all into profits. So, every company that is acquiring Bitcoin despite on how reputable they are as a solid holder, there is a chance that they might sell due to financial constraints that they have to do it to cover their losses and to share the profits that they have made for their investors or shareholders too. And if they do this, a panic will surely happen but as a normal attitude and character of Bitcoin which is being resilient, the market might dump but it will recover quickly.

[tread93]

If MicroStrategy sells all his bitcoin, the price of bitcoin will only be affected temporarily and after a while, the price will go back to normal because other investors will buy them. Just like in the last quarter of last year that Germany government sold all the bitcoin seized from movie2k, the price was down for a while but we were able to see a new ATH.

Not everybody will panic and sell a good asset like bitcoin when they're seeing the benefits of buying and hodli bitcoin written on the wall. Don't think about too much so that you don't get discouraged of starting your Bitcoin investment immediately.

I think a lot of institutions would probably rally sell on top of them selling out of fear and it could definitely have major implications on the bitcoin price but I agree it would eventually even back out and go back up and the coins would just be in new hands

[Fivestar4everMVP]

What if MicroStrategy decided to sell all of its Bitcoin?

Could that be a black swan event?

The very thought is unsettling.

What if institutional investors, like retail traders in the past, are hit by BTC FUD and choose to panic-sell all their holdings?

Do you see this as a realistic possibility in the future, or am I overthinking it?

I honestly think you are overthinking, institutional investors like microstrategy have been in the business of investing in credible and reliable assets over the years and have done their research on bitcoin and found some really great potentials in it before they decided to pour in billions of dollars into investing in it, it is not possible for them to just wake up one morning and decide to sell off their entire bitcoin all at once over a fud that could actually mean nothing, what you seem not to know is that they have much more to lose than just bitcoin, they will lose their reputation as a business and possibly their license too, they will likely face several lawsuit from different government bodies, especially the SEC for manipulating the price of Bitcoin.

So for me, an institution like microstrategy cant just wake up and sell off their bitcoin at once because they have alot of eyes on them, if they must sell, it must either be done over the counter type of sell, or they will have to divide the sale into several sessions over different period of time to mitigate the effect on the market.

[maydna]

~snip~

If MS drops their BTCs, they probably won't think about others and what they think, they will think only about themselves Because the situation would be so bad, it needs to be done.. But I don't see such a situation happening anytime soon.

They will only think about their profit and how big they can get from their Bitcoin investment. Yes, they will not care about others because that is none of their business. We will see the price dump deeper if they sell all of their Bitcoin. However, the benefit from the dump is that we can buy Bitcoin at a very low price. Many people will not miss that time to load many Bitcoins into their wallets because they believe Bitcoin price can increase again. But MS will not do that unless they don't see other benefits of Bitcoin in the future.

[EarnOnVictor]

What if MicroStrategy decided to sell all of its Bitcoin?

MicroStrategy is a big name in the world of Bitcoin, so big names like that, especially the one that is a positive voice for Bitcoin will certainly negatively affect the coin if it pulls out. Many others who are following its pattern will do the same, and this will cause panic selling in the market.

Do you see this as a realistic possibility in the future, or am I overthinking it?

Overthinking? Yes, take it lightly. Is it possible in the future? Nothing is impossible.

[tottong]

What if institutional investors, like retail traders in the past, are hit by BTC FUD and choose to panic-sell all their holdings?

Do you see this as a realistic possibility in the future, or am I overthinking it?

They become a part of Bitcoin supporters and maybe efforts to make massive sales will not be done and even the CEO itself has said it will not sell it.
But even if that happens, it is likely that the influence on the pressure the market will definitely occur but its temporary nature is not a long -term step.
Now there are several methods that may be carried out by companies or groups to the approach in Bitcoin, generally they will never sell at once at any moment.

The amount of bitcoin they have is quite large and will definitely have an impact when all of them are sold simultaneously and I don't think it is for that the purpose of adopting Bitcoin they do.

[Swordsoffreedom]

You're wasting your time thinking about it because it's never going to happen. If they sell they will do it OTC.

Agreed, they will definitely sell their bitcoins through OTC and that is what institutions, big holders do because this will help reduce the negative impact as well as damage to a volatile market like crypto. What I want to emphasize is that many people are underestimating the impact of Strategy and thinking that the market will not notice or be affected by it.

Just 1 news spread that Strategy is making a move and they intend to sell their bitcoins. The market reaction is inevitable, regardless of whether they sell BTC via OTC or someone publicly buys it back. With what they have done and are doing with bitcoin, they have a significant impact on the market, we should not deny that.

[Stablexcoin]

If it is not related to a global crisis, a general ban on cryptocurrencies or something similar, there may be some initial panic in the market and perhaps a sharp drop in price. But the coins will return to circulation and there will still be a lot of demand for bitcoin, and it is possible that other large institutions will buy it, as well as small investors.

There would be panic for sure, people would ask the question on why…, the reason why is what would determine a chain of other reactions. If there isn’t anything wrong with the technology itself, then you we would have to endure a short bearish season that would stabilize real soon too. In fact, it would create an avenue for people to buy in at a good price, that’s one thing I know would happen. Then when Bitcoin is back to its glory days, they would be history.

MicroStrategy cannot be dumb enough to sell all Bitcoins at a go, according to what they are called, strategically they analyze everything they do, FUD can never be what to break them, if they want to sell Bitcoin, they would rather do it in portions. It's a strategy, if they decide to sell let's be sure of dip, Bitcoin will experience something bear market, who buys back during that bear, same company. Something about digital currency is that when you are a whale, there is a chance of temporarily manipulating the market.

[taufik123]

Agreed, they will definitely sell their bitcoins through OTC and that is what institutions, big holders do because this will help reduce the negative impact as well as damage to a volatile market like crypto. What I want to emphasize is that many people are underestimating the impact of Strategy and thinking that the market will not notice or be affected by it.
-snip-

Yes, OTC is the best way to sell their bitcoin without affecting the bitcoin market. Microstrategy won't be as stupid as selling hundreds of thousands of Bitcoins directly to the market,
it's the same as killing the ecosystem and getting bitcoin back to a very low price.

The market will really be shaken when an investor as big as Microstrategy sells his bitcoin, Even before they sell and appear the issue of the price will also be affected,
this is the effect of the company that holds the largest bitcoin holding, so they will not foolishly sell directly in the market.

[hd49728]

MicroStrategy cannot be dumb enough to sell all Bitcoins at a go, according to what they are called, strategically they analyze everything they do, FUD can never be what to break them, if they want to sell Bitcoin, they would rather do it in portions. It's a strategy, if they decide to sell let's be sure of dip, Bitcoin will experience something bear market, who buys back during that bear, same company. Something about digital currency is that when you are a whale, there is a chance of temporarily manipulating the market.

With their big portfolio, Bitcoin market trading volume and their years of experience in this market, they know that if they dump all bitcoin from their portfolio, it is not different than their own suicide.

They are smart institutional investor and they will not be stupid enough to suicide with their sale action like dumping. They can sell but with a strategy of getting as much money as possible, but like dumping and self killing their portfolio by triggering a market crash that surely affect their sale value too.

[HelliumZ]

What if MicroStrategy decided to sell all of its Bitcoin?
Could that be a black swan event?
The very thought is unsettling.
What if institutional investors, like retail traders in the past, are hit by BTC FUD and choose to panic-sell all their holdings?
Do you see this as a realistic possibility in the future, or am I overthinking it?

Of course, this is an overthinking because Michael Saylor is constantly buying Bitcoin. He wouldn't be so stupid as to sell all his Bitcoin holdings on the market at once. This may be more of a personal sentiment or emotion, but one thing to note is that if a coin worth over $100k suddenly sells a large holding, its impact will definitely be seen in the market temporarily. However, that effect will not last long because such isolated events have happened many times before, yet the market is moving in a certain cyclical pattern. If MicroStrategy makes such a decision in the future, then the market will definitely go into a temporary blood-situation.

[Finestream]

This is not really impossible as they will end up selling all their bitcoin in the long run, even other big investors as well. But this isn't a form of panic selling, they know their goals with bitcoin, once they achieved it, they may surely sell all their bitcoin.

When this time comes, bitcoin price will be temporarily affected and we may see a price decline, but that's normal. The price will surge again in due time, and this time it could skyrocket again and reach another peak price.

[Botnake]

You're actually overthinking. No smart investors would chose to sell their bitcoin through panic selling, it will only compromise their future profits with bitcoin. And if ever the time comes that they will decide to sell their bitcoin, the price has already achieved more than what they expect it to be, so at the end of the day, they will certainly sell and enjoy their massive returns.

Nothing's new for bitcoin, it will drop its price and quickly recover. I guess that's how volatile investments do their work.