Michael Saylor holds 111,000 Bitcoin – and sells none

Michael Saylor presents himself as a flawless Hodler and also Binance boss “CZ” conjures up the diamond hands – but with moderate success, as the SOPR shows.

The crypto market showed its most brutal side yesterday. Within 24 hours, the most recently hit Bitcoin price had dropped over 30 percent. A veritable flash crash had pushed BTC briefly to USD 30,000 in the afternoon. The bloodbath has undoubtedly washed many “weak hands” out of the market.

Michael Saylor holds 111,000 BTC unimpressed

Michael Saylor is by his own admission not one of them. With his uncompromising Bitcoin bullism, the CEO of Microstrategy has long made his way into the hearts of the crypto community and is deliberately buying up the dips that are produced by a panicked market. Despite – or perhaps because of – the current sell-off, Saylor insists on Bitcoin’s supremacy and again shows off his diamond hands:

Entities I control have now acquired 111,000 #BTC and not sold a single Satoshi. #Bitcoin Forever.

Newbies to crypto may interpret this behavior as sheer stubbornness. But a look at the price history of Bitcoin shows that panic sellers have always drawn the short straw in the end.

Changpeng “CZ” Zhao: “Don’t Exaggerate Trading”

Changpeng Zaho also warns of emotional snap shots. This is remarkable insofar as Zhao, as head of the largest Bitcoin exchange in the world, actually benefits when paper hands in droves carry their crypto-saved money to their grave or to the exchange. Zhao, also an accomplished Twitter, has cautioned his customers:

I would like to tell you to over-trade, it would be good for the commissions. But I have to tell you, for most of you, HODL is a much better strategy in the long run. Don’t trade too much.

According to Zhao on May 19, when he pointed out that this was not investment advice. At the same time, Zhao could only have had the well-being of his crypto exchange in mind, because it had been on strike again and again under the enormous influx of yesterday’s trading day.

Whales eat shrimp

A look at the SOPR indicator shows that many investors have made the fundamental mistake of selling at a loss. SOPR stands for “Spent Output Profit Ratio”. It relates the purchase price of a Bitcoin unit to its sales price. A value of <1 means that, on average, Bitcoin has changed hands with a loss. Like data from Glass node show, many investors have let themselves be chased by the corona crash. Much to the delight of large investors who got into BTC on a massive scale in 2020.

But yesterday’s blood-red trading day was probably not every evening: At the time of writing, the signs for Bitcoin and Co. are again slightly pointing to recovery.