Down the Rabbit Hole — June 22

Chart of the Day

Dampened spirit. The impact of China’s ban on the crypto industry has just begun to unravel, bringing out a defeatist attitude among the most adamant of bulls. The price of Bitcoin extended its decline beyond price walls and key support zones and is currently trading well below its 100-hourly moving average.

The hashrate exodus from China has very real implications, including miners liquidating a portion of their Bitcoin treasuries to provide capital for the arduous journey to the West as well as hedging against potential risks, if not exiting from the market altogether. 

Talk of the Town

Binge buying. MicroStrategy’s latest spending spree involved the purchase of an additional 13,005 bitcoins worth $489 million, amidst the massive BTC price plunge yesterday, though the news did little to slow the dramatic slide.

According to Bloomberg, upon the purchase, MicroStrategy might have incurred a nearly $77 million charge as Bitcoin touched an intraday low of $31,735. A brutal twist of fate, considering the company’s first few ventures into Bitcoin last year was practically a steal. The software company now has over 105,000 Bitcoin holdings under its belt, while its stock has dropped 54% since its February peak.