MicroStrategy by Michael Saylor is down more than 50% month-tomonth due to bitcoin’s price volatility. On Tuesday, the price of $MSTR was below $200.
MicroStrategy traded at an 18-month low on Tuesday, as cryptocurrency prices continue to fall in tandem.
According to TradingView, shares in Michael Saylor’s software company were worth $188.50 as of the writing date.
This is a decrease of more than 55% compared to April 25, when $427.05 was recorded.
MicroStrategy’s huge bet on Bitcoin – it and its entities currently have 129,218 bitcoins. However, the average bitcoin purchase price has fallen to $30,700.
Bitcoin (BTC), trading at $28,746 USD, at the time. It had fallen below $30,000 May 12, following the collapse Terra’s stablecoins TerraUSD(UST). This caused a downward pressure on all digital assets and spread to the crypto market.
MicroStrategy traded at these levels for the last time on November 9, 2020 when it was trading around $183. The price of bitcoin (BTC), at that time, was $16,410.
The drop in share prices is not caused by the bet made by the software company on bitcoin.
Wider financial markets have been affected by the macroeconomic environment as central banks and governments address rapidly increasing inflation.
In an effort to curb rising inflation, the US Federal Reserve has pledged to reduce its $9 trillion balance from next month.
Most major US stock indexes are now down year-to date due to this. Since January, the S&P 500 has lost 18.91%, while the Nasdaq Composite has fallen 29.50%, and the Dow Jones has fallen 13.99%.
