Low trading volumes make bitcoin vulnerable to manipulation
Michael Saylor expressed confidence in the optimistic future of bitcoin, which sooner or later will become one of the accepted forms of ownership.
In his opinion, the BTC network has unique potential, can support new features - and will soon be used by billions of users. In the long run, bitcoin will be owned by almost every person or firm, writes newscryptocoin.
MicroStrategy's big bet on bitcoin, including leveraged funds, is "the strategy with the highest potential and lowest risk" as well as portfolio diversification, according to Saylor.
At the end of June, the total number of bitcoins in the company's wallets amounted to 105,085 BTC. For their purchase was spent about $2.741 billion, of which borrowed funds amounted to $2.2 billion. At the same time the average purchase price rose to $26,080.
Meanwhile, institutional investors are withdrawing funds from crypto-focused products for the fourth week in a row, despite the bitcoin rally.
Over the past seven days, institutions have withdrawn about $19.5 million from cryptocurrency-oriented products.
CoinShares believes that the outflow of capital from bitcoin products amid market growth occurred due to a change in investor tactics. Many institutionalists took advantage of the rally to lock in profits.
The volume of investments in funds focused on the cryptosphere is currently more than $4.1 billion.
"Over the weekend, bitcoin gave market participants hope for continued growth above $42,500, but sellers stepped up again there, bringing the price back below $40,000 again. Low trading volumes around $25 billion make BTC vulnerable to manipulation and could lead to a situation where a few large investors are able to drive bitcoin and the entire market after it," notes FxPro's analyst team.