A 32 Bitcoin Sale Makes Headlines

To receive the Morning Note in your inbox, subscribe here: https://stormrake.substack.com/

With Bitcoin growing to the size it has today, we frequently witness the movement of hundreds if not thousands of Bitcoin in a single transaction by institutions or old whales. Yet none of those have broken headlines or shocked investors as much as a single 32 BTC sale which occurred last night.

A sudden flash of selling pressure last night saw Bitcoin drop 3% after reports emerged that Michael Saylor’s company Strategy sold 32 Bitcoin at $77,135. For many market participants, this headline comes as a psychological shock. Saylor has long been vocalised as one of the ultimate Bitcoin maximalists, repeatedly instructing investors to never sell their coins. Watching a prominent figure execute a sale naturally invites doubt and tests the conviction of those who look to industry leaders for validation.

Context is everything when these headlines hit the tape. This marks the first time Strategy has sold any Bitcoin in over three years. The last time the company executed a sale was on 22 December 2022, when they distributed 704 Bitcoin at $16,776. To illustrate how routine these balance sheet movements are, they quickly bought back 810 Bitcoin just two days later on 24 December 2022 at $16,845.

It is important to maintain perspective. No individual, no matter how large their treasury or how loud their advocacy, is bigger than the Bitcoin network itself. History supports this reality, as the network has continuously operated flawlessly while poorly managed entities or over-leveraged participants collapsed around it. Ultimately, individual transactions by corporate figures are short-term market noise and distractions.

The underlying technology, the tightening liquid supply, and the decentralised architecture of the asset remain entirely unchanged by a single person adjusting their positioning. True conviction is built on understanding the fundamental use case of sovereign money, not on tracking the wallet movements of prominent figures.

A single transaction does not invalidate a macro thesis. Investors who build generational positions do so by ignoring the daily noise and focusing entirely on the long-term horizon. Reach out to your dedicated broker if you have questions or wish to discuss these market movements further.

Stormrake Spotlight: Pax Gold (PAXG) ($4,481)

Source:https://www.tradingview.com/x/ugWaKisN/

PAXG has begun the week with another retest of the bottom of the support zone, the moving average resistance has now made its way into the zone, reinforcing the downside pressure in this zone. It is only a matter of time before we get a sustained break below.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/LrZxeev0/

Aforementioned, Bitcoin has broken down and lost another 3% over the last 24 hours, the bear flag pattern pushed BTC below the key support level at $71.7k and looks to have effectively played out. The bears remain in control and can expect BTC to test the key support at $70k.

To receive the Morning Note in your inbox, subscribe here: https://stormrake.substack.com/

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

Create a brokerage account today

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

Disclaimer

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.