Bitcoin bulls are worried as trading legend Peter Brandt shares his new price outlook. Meanwhile, MicroStrategy has doubled its Bitcoin holdings in the past year, but the fact that these assets are not contributing to the company’s profitability raises concerns.
The Bitcoin saga has worried: BTC is recording lower highs!
A new Bitcoin price review by Peter Brandt has sparked a wave of backlash in the crypto community. Thus, the legendary trader, who has been active in the financial markets since the 1970s, noticed that for more than half a year, the BTC price has been consistently recording lower highs.
As you have been following on Kriptokoin.com, Bitcoin reached a new price peak of around $74,000 in March. However, the leading cryptocurrency failed to break this level in the following months. According to analysts, successive lower highs can be interpreted as a downtrend. Based on this alone, the BTC price is unlikely to break above $69,000 in the near term. This could significantly dampen the extreme bullish sentiment of recent weeks. Therefore, it could bring an element of fear to the market and increase the fragility of the price structure.
Peter Schiff immediately stepped in!
Interestingly, Brandt has faced a lot of criticism for his outlook on Bitcoin. For example, the trader was accused of changing his shoes: if recently he shared quite bullish predictions, today his comments are already bearish.
Even Peter Schiff, a well-known Bitcoin critic, couldn’t resist asking Brandt if this meant that he was no longer as bullish as he was when he warned that Bitcoin would outperform gold by 5 times. The crypto skeptic noted that since the publication of this article, BTC is down 4% while gold is up 2%.
MicroStrategy Bitcoin debt at risk if cash flows don’t improve
MicroStrategy, the world’s largest institutional Bitcoin holder, has been praised for adding a large chunk of Bitcoin to its balance sheet, and other companies have joined the bandwagon. However, market analysts have begun to pay closer attention to the company’s core software business. Chairman Michael Saylor made the company’s first BTC purchase in September 2020, setting a precedent for how to best utilize cash from operations. Over the past four years, Microstrategy’s BTC stock has risen to $15 billion, while revenue from its software business has stagnated, Bloomberg reported.
While the company is scheduled to release its second-quarter results today, August 1, analysts have little expectation of a revenue pump. Lance Vitanza, an analyst at TD Cowen, said: “The big question for me is making sure their cash flows will be enough to cover the increased interest expense associated with the convertible debt they issued. If my estimates are correct, they don’t have a lot of margin for error in case their software business underperforms.” Interestingly, TD Cowen still has a “buy” rating on MSTR Stock, which has outperformed Bitcoin over the past 18 months with a 134% return since the beginning of 2024.
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