Concerns are rising regarding Strategy’s Bitcoin holdings following the insights shared by industry expert Tony Severino. He highlighted that Bitcoin’s current price movement indicates the 200-day Moving Average (MA) is trailing below the company’s average cost for their BTC, potentially leading to unrealized losses in the near future.

Implications for Strategy as BTC Stays Below Key $50,000 Threshold

In a recent post on X, Severino analyzed historical trends, noting that each Bitcoin bear market has typically tested the 200-week Moving Average. Currently, this metric stands at $47,000, placing it approximately 30% below Strategy’s acquisition cost. He cautioned that this cost basis is daringly close to the low of April 2025, and any further declines could place the company’s investments in jeopardy.

If Bitcoin descends further or enters a bear market, Severino predicts that Strategy may soon find itself dealing with significant losses. Following their latest investment of 13,390 Bitcoins, the company is now holding 568,840 BTC, acquired at an average price of $69,287, significantly over the 200-week MA.

Previously, Ki Young Ju, the CEO of CryptoQuant, stated that the only scenario where Strategy’s gambit could lead to bankruptcy would involve a catastrophic drop in Bitcoin’s price to around $16,000. He suggested such a plunge is unlikely, giving him confidence that Strategy will not have to quickly offload their BTC assets.

Nonetheless, critiques persist. Economist Peter Schiff remains vocal against Strategy’s aggressive Bitcoin acquisition strategy. His latest observations suggest that an upcoming purchase could elevate their cost basis above $70,000, casting doubt on the sustainability of such high-leverage investments. Schiff emphasized that these apparent paper losses could soon materialize as real financial distress.

Optimism Prevails: BTC’s Potential Upsurge

On a more optimistic note, Crypto analyst Titan of Crypto has predicted that Bitcoin could yield substantial upward movement in this market cycle, benefiting Strategy’s holdings. In a recent X post, he mentioned that the current monthly LMACD has yet to show signs of a bearish crossover, a pattern noted in previous market peaks.

Consequently, there are speculations that Bitcoin’s 200-week MA could witness further elevation as the price nears the market apex. Analyst CrediBULL recently posited that Bitcoin might ultimately climb to as high as $150,000 or even $200,000 during this bull run, with Standard Chartered echoing a similar sentiment, predicting a potential $200,000 valuation by year-end.

As of now, the price of Bitcoin sits around $102,000, showing a slight decline over the past day, according to CoinMarketCap.