Bitcoin’s difficulties are poised to worsen as the crypto asset’s price fell further Wednesday, trading at $27,194.41 at one point. Bitcoin’s price has recently dropped to its lowest level in 16 months. According to Michael Saylor, the enormous sell-off is the consequence of various factors, including imminent Fed rules and the much-discussed UST depegging.
Like previous times, Bitcoin dragged the majority of altcoins down with it. The present situation of Bitcoin has emerged as a popular issue in the financial arena, revealing a plethora of hypotheses, opinions, and disputes.
According to Michael Saylor, millionaire businessman and co-founder of MicroStrategy, the Bitcoin price is controlled by a small handful of people. “Those with more money and less expertise than you decide the price of #Bitcoin.” “They will receive the information and you will get the money in time,” he tweeted early yesterday.
Since the digital coin’s introduction into the realm of finance, there has been speculation that the price of Bitcoin is controlled by rich individuals. Its secrecy and underlying technology have fanned these doubts throughout Bitcoin’s journey, which has been compounded in the last two years by an inflow of institutional buyers.
In the early stages of 2021, multi-billion dollar national and private businesses jumped into the Bitcoin pool and began purchasing significant amounts of it. When it began acquiring BTC in August 2020, MicroStrategy was one of the companies that sparked the institutional wave.
According to BuyBitcoinWorldwide statistics, asset managers had a total of 1,476,568 BTC worth $70 billion as of August 30, 2021, which was comparable to 7.85 percent of the coin’s circulating supply at the time, which was 18,797,968 BTC. Grayscale Investments and MicroStrategy, of course, were the driving forces behind the spending.
Although Saylor’s statements came at the worst possible time, some investors have taken notice, using them to support an already widely held belief. While there is no proof that the price of Bitcoin is influenced by a few wealthy individuals, there have been times where the price of the cryptocurrency has been altered when there is increased whale activity in the markets.
Some acquisitions, like as Tesla’s, have also had an impact on Bitcoin prices. The price of Bitcoin increased by 20% after it was revealed that Tesla had acquired $1.5 billion in Bitcoin. Saylor’s tweet also implied that the price of bitcoin will recover and reward HODLers.