The decline in Bitcoin affected all investors. However, institutional investors holding large amounts of Bitcoin suffered even greater losses.
At this point, Strategy, the largest institutional Bitcoin holder, has incurred losses of approximately $5 billion.
However, despite the price drops and losses incurred, Strategy continues to buy Bitcoin.
Strategy founder Michael Saylor said they would continue buying, while one analyst said Strategy should stop buying Bitcoin.
At this point, CryptoQuant senior analyst Julio Moreno said that Strategy (MSTR), the largest institutional Bitcoin holder, should temporarily halt its purchases.
Moreno stated that Bitcoin is in a bear market and that Strategy should acknowledge the current bear market and therefore temporarily suspend its buying activities.
The analyst advised Strategy to wait for market conditions to improve before continuing Bitcoin purchases. He noted that improving market conditions could take several months and also stated that continuing to buy at market peaks is not the right approach.
The analyst recommended holding onto cash during a bear market and investing when a bull market begins.
Michael Saylor did not directly respond to this advice, but he stated that the company will continue to buy BTC every quarter and has no plans to sell its Bitcoin holdings.
With this latest purchase, Strategy now owns 714,644 BTC, worth approximately $54.35 billion. The average purchase cost is $76,056.
*This is not investment advice.
