Michael Saylor continues the "green signal" to buy Bitcoin as BTC hits a low of $87,600

Last weekend, the Bitcoin market experienced a strong sell-off. By the end of Sunday, BTC prices dropped to a two-week low of $87,600 on Coinbase according to TradingView data. However, by the time of writing, the world’s leading digital asset has recovered above $89,000, demonstrating ongoing volatility in recent days.

Market experts point out that weekend price drops have become an unpredictable trend. The most recent plunge to $87,600 was the lowest since December 2, after Bitcoin had rebounded from a crash down to $84,000 not long before.

New Bitcoin Buying Signal from MicroStrategy Leadership

On X (Twitter), Michael Saylor — MicroStrategy’s Chief Strategy Officer — posted a message widely interpreted as a signal of an upcoming Bitcoin purchase. The post read “Back to More Orange Dots” along with a portfolio chart, which Saylor often uses to announce large buying decisions.

Earlier, on December 12, MicroStrategy made its largest Bitcoin purchase since late July, adding 10,624 BTC to the company’s treasury, according to SaylorTracker. As of now, MicroStrategy holds a total of 660,624 BTC, worth approximately $58.5 billion at current market prices.

Notably, the average purchase price per Bitcoin for MicroStrategy is $74,696, meaning the company still maintains a significant profit margin with its holdings so far. This approach by Saylor is seen as a clear sign of long-term confidence in Bitcoin’s value.

Pressure from Japan — The Main Factor Behind the Sell-Off

Analyst “NoLimit” suggests that the strong selling pressure stems from expectations about upcoming monetary policy changes by the Bank of Japan. They note that Japan’s influence on Bitcoin is often underestimated by investors. Japan holds the largest amount of U.S. debt in the world, so any change in its interest rate policy can have ripple effects globally.

History shows that whenever the Bank of Japan raises interest rates, Bitcoin often faces significant crashes. The Polymarket forecasting platform currently indicates a 98% probability that the Bank of Japan will raise interest rates by 0.25% this coming Friday.

To understand better, carry trade is a financial strategy where traders borrow at low interest rates from Japan to invest in higher-yield assets abroad. When Japan raises interest rates, this model becomes less attractive, prompting macro funds and traders to liquidate positions to pay off debts.

Justin d’Anethan, head of research at Arctic Digital, told Cointelegraph that although Bitcoin has recovered from its November lows, reaching $88,000 still feels like a significant setback. He predicts that fears of another carry trade unwind will continue to pressure risk assets, causing large funds and short-term traders to withdraw capital, potentially pushing prices lower.

Is the Market Truly Not Reflecting All Information?

However, analyst “Sykodelic” holds a different view. They believe the market has already priced in these factors into trading decisions. “The market never waits for the actual event to happen. Instead, it always acts based on expectations and forecasts of what’s coming,” Sykodelic commented.

Following this logic, d’Anethan predicts that Bitcoin’s price will continue to fluctuate within a fairly wide range, mainly between $80,000 and $100,000. These movements are expected to persist until a strong catalyst appears — a catalyst that may not come soon.

In this context, the attitude of Michael Saylor and MicroStrategy continuing to buy Bitcoin at lower levels can be seen as a signal from major private investors that they remain optimistic about the long-term prospects of cryptocurrencies.