Another big sale expected from micro strategy

[The Cryptovator]

I am not sure why a few investors become panicked when a big company like MicroStrategy wants to sell their Bitcoin. So what we want actually is for Saylor to burn his holdings for us? Can’t he sell and buy back when necessary? It doesn't matter the price a company can sell at anytime in case they need liquidation.

Actually we overreact to such events; we don’t like to consider this to be normal market behaviour. I am not sure if they sell or not, but it seems the market hasn’t reacted too much. Everything seems normal to me, and probably we shouldn't be concerned if someone wants to sell their Bitcoin.

[M47AK16]

I am not sure why a few investors become panicked when a big company like MicroStrategy wants to sell their Bitcoin. So what we want actually is for Saylor to burn his holdings for us? Can’t he sell and buy back when necessary? It doesn't matter the price a company can sell at anytime in case they need liquidation.

Actually we overreact to such events; we don’t like to consider this to be normal market behaviour. I am not sure if they sell or not, but it seems the market hasn’t reacted too much. Everything seems normal to me, and probably we shouldn't be concerned if someone wants to sell their Bitcoin.

Yeah I agree. The reason why there is always so much uncertainty among retail investors is that they are mostly focused on what others are doing with their investments instead of focusing on their own investments and how they should manage everything.

There is nothing wrong in staying aware with the fundamental things in the industry, but one shouldn't base their investment decisions on an industrial investor's decisions, if you are not at the same level as them, because you probably can't buy and sell bitcoins worth billions of dollars, then your strategy can also not be the same. They might sell today, buy again tomorrow, sell again, and keep doing that, but you probably can't do that.

I know that a large number of retail investors have actually become way mature than before, and they now barely react to such things, but I think there are still people out there who do, and this is the reason why whales and industrial investors are always able to manipulate the market for their own benefits, and retail investors are the ones who make their plans successful by creating selling pressure and allowing them to buy more assets at lower prices, and then the same people will buy again when the prices go higher because they now believe they are going to miss out on the potential profits they can get in the near future.

[PERtua]

I don't know if this big sale from Microstrategy is going to cause the market to plummet again or we are going to experience more pump over the market, but looking forward now with what we have already, it seems like the market is bullish and we have to consider the smart action of microstrategy to be another reason that may cause a little fall over the market for potential investors to come in and buy before we experience a surge in continuation, but while this is yet to be confirmed or take effect, we are still more bullish with the market as we speak.

The market is looking not to be on the decline but that doesn’t mean that we are already bullish and the big sell from Microstrategy will have the market fall so big. The nature of the market looks not to be in accordance to breaking news of sells like this from Microstrategy, the market is showing a very strong trend actions on its own accordance and not of the external factors of the whales in the market. The effect of those sells may come, but it may be so insignificant that we don’t know when it happens and the market continues to trails more on its path. For me, the market direction is unclear and we may see some crazy volatility for the short time in the market if a massive sell happens.

the market has evolved to a degree that even a big sell off from MicroStrategy won't cause any major crash. There is much more liquidity now than there was a few years ago, and there is an appetite for institutions to buy and sell a lot if it comes in a controlled manner. Short-term volatility is always a possibility as traders are usually subject to emotions and tend to react to headlines, but I wouldn't take one company's actions to mean Bitcoin will move in a particular direction in the long run. The sale of a whale will likely not have as much effect on macroeconomic conditions, ETF inflows or overall market sentiment.

[MadSl1m]

The 8-K answers the motive question better than the guessing does. Strategy sold 1,638 BTC for $104.73M in the week of 27 July to 2 August at an average of $63,957, and split the proceeds almost in half: $52.4M to fund preferred dividends, $52.3M to buy back STRC.

Two things follow. They sold below their own average cost of $75,419, so this was not selling high. And the ATM was open the whole time, raising $290.6M from 3,011,361 MSTR shares, so it was not a funding shortfall either.

It is duller than manipulation. STRC is a perpetual preferred that Strategy tries to keep trading at its $100 stated amount, with a dividend it resets monthly and which accumulates with interest if it is ever skipped. That is a calendar obligation denominated in dollars, and BTC is the asset that becomes dollars fastest. 

[Bushdark]

the market has evolved to a degree that even a big sell off from MicroStrategy won't cause any major crash. There is much more liquidity now than there was a few years ago, and there is an appetite for institutions to buy and sell a lot if it comes in a controlled manner. Short-term volatility is always a possibility as traders are usually subject to emotions and tend to react to headlines, but I wouldn't take one company's actions to mean Bitcoin will move in a particular direction in the long run. The sale of a whale will likely not have as much effect on macroeconomic conditions, ETF inflows or overall market sentiment.

There is a lot of sentiments in the market and this has become a mixup that will make it hard for the market to show a sharp bull market looking at what's happening in the market. The price of Bitcoin has been unstable and I am not sure if the price of Bitcoin is going to have a bull surge since we are already in the bear market with so many signs that is sending signals about what we should be expecting and we should not be ignorant of it. There is no way to stop the whales from selling their holdings and all we have to do is to stay positive.

[danherbias07]

Two reasons that I can see. One is probably trying to make a profit, but I highly doubt they will drain the vault. The second is trying to bluff the other institutional investors. If they sell first and the price of Bitcoin goes down, it will be a great opportunity for them to buy at a lower price.

These big investors have their own strategy when it comes to buying cheap and selling high. Since most are looking at social media and the internet, they can use it to make claims that are probably not true, but it can be a good strategy to make the competition think about what they will do, even though it's a lie. If the price moves and Microstrategy didn't sell, then it's possible that they made the right call.

[Cheema02]

Two reasons that I can see. One is probably trying to make a profit, but I highly doubt they will drain the vault. The second is trying to bluff the other institutional investors. If they sell first and the price of Bitcoin goes down, it will be a great opportunity for them to buy at a lower price.

These big investors have their own strategy when it comes to buying cheap and selling high. Since most are looking at social media and the internet, they can use it to make claims that are probably not true, but it can be a good strategy to make the competition think about what they will do, even though it's a lie. If the price moves and Microstrategy didn't sell, then it's possible that they made the right call.

I don't think they are naive enough to think that if they decide to sell some of their Bitcoin holdings, their competitors or other institutional investors will sell before them and then they can buy more bitcoins at a cheaper price, because other institutional investors aren't like retail investors who would react so quickly about such news and then panic sell, every institutional investor has their own strategy of when they will buy and when they will sell, and their decisions can't be influenced by a decision of another institutional investor, so this point doesn't make much sense to me.

About taking profit, I also don't think they are going to make any profits by selling bitcoins at this price, because their average buying price is higher than the current price based on their DCA and how much they have bought throughout the history, so it is definitely not a move for taking profits, especially when they could get very good profits if they were to sell when the price was higher but they didn't do it. So their strategy is probably something else that we can't know or guess.

[dansus021]

Damn another news from Strategu every sell and buy now become a headline but hey I would simply reply Micro Strategy or Blackrock or anyone is just look for profit so at the end of the day they would buy for sell later just like we did, the difference is they have enough capital and we dont.

But they did this because they want profit and need hard cash to pay their holder a dividend

[Samlucky O]

All this are just strategy to manipulate the market, it's already noted that Whale have a higher shear in Bitcoin adoption and thisake them powerful to the extent of manipulating the market, if micro strategy speculated that Bitcoin could reach $180 by Q4 of this year and decided to sell instead o buying, it means the dump is intentional, if he dumps the market others will follow suit out of panic and the price will be extremely down, then they will come in and buy, when other whale see that Bitcoin is climbing it will make them buy more and they will make more profit, This are just manipulative strategy.

[johnsaributua]

...

There is a lot of sentiments in the market and this has become a mixup that will make it hard for the market to show a sharp bull market looking at what's happening in the market. The price of Bitcoin has been unstable and I am not sure if the price of Bitcoin is going to have a bull surge since we are already in the bear market with so many signs that is sending signals about what we should be expecting and we should not be ignorant of it. There is no way to stop the whales from selling their holdings and all we have to do is to stay positive.

I am quite skeptical that market prices will remain stable at current levels over the coming months. A sudden price surge seems unlikely in the near term; while anything is possible, I see no signs of upward momentum from recent months. This leads me to believe that the price will likely stay below $70,000 through the end of this month.
This does not mean I am opposed to a price surge. However, I believe our best course of action right now is simply to accumulate Bitcoin. By doing so, we prepare ourselves and increase our asset holdings while the market remains stable. Rather than dwelling on matters that offer no personal benefit, we can adopt a positive mindset and position ourselves effectively for the eventual price surge we all hope to see.

[MArsland]

I think MicroStrategy is acting within their rights and powers to do with their Bitcoin what they want and there is nothing anyone can do about it. There is no point demonising them for wanting to take some money off their investment because that is their money and Michael Saylor may be acting on the pressure from investors. What is most important is what we do with the information because such action may have serious negative effect on the market which makes it an idea time to buy some cheap Sats.

Microstrategy and Saylor's bitcoin holdings are legally distinct, so Microstrategy has a decision driven by a set of investor requests to sell bitcoin while Saylor's privately held bitcoin holdings depend on it. So there is a boundary between the two in deciding an interest.

Just me a domino effect of profitable sales Microstrategy Saylor, he can get information faster and buy more.

[Pandu Geddon]

All this are just strategy to manipulate the market, it's already noted that Whale have a higher shear in Bitcoin adoption and thisake them powerful to the extent of manipulating the market, if micro strategy speculated that Bitcoin could reach $180 by Q4 of this year and decided to sell instead o buying, it means the dump is intentional, if he dumps the market others will follow suit out of panic and the price will be extremely down, then they will come in and buy, when other whale see that Bitcoin is climbing it will make them buy more and they will make more profit, This are just manipulative strategy.

They have a lot of money and maybe they are able to do it. But I think right now, people are aware of holding onto their Bitcoin and not panicking watching the market. If there is a massive selling, there will be definitely a drop, but if it does not trigger panic and other big Bitcoin holders do not sell, then any drop that happens can be short and the price will pick up fast.