Strategy's resilience capacity will be key for Bitcoin's price, according to JPMorgan

Source: CritpoTendencia Original Title: The Resilience Capacity of Strategy Will Be Key for Bitcoin’s Price, According to JPMorgan Original Link: According to experts from financial giant JPMorgan Chase, the resilience capacity of Strategy will be key for Bitcoin’s price in the short term. It should be noted that this company is the largest corporate holder of the leading digital currency. For days, the company has been facing an extremely complicated environment.

Rumors intensified after statements from the firm’s CEO, Phong Le, regarding the conditions under which it might sell its BTC reserves. Although the executive assured that a sale would only occur in a highly unlikely scenario, this did not stop the rumors.

Subsequently, the firm raised $1.4 billion to secure dividend payments to investors for more than 20 months. A few weeks ago, JPMorgan itself warned about the possibility that the firm could be excluded from some key indices in which it is listed. These indices, including the MSCI, account for billions of dollars in revenue for Strategy.

Despite all the negative sentiment generated as a result of these events, the American bank has moderated its tone. The lender’s strategists now offer a less pessimistic outlook and point to the company’s resilience capacity. According to their assessment, Bitcoin’s price stability in the short term depends on this.

The Relationship Between Strategy and Bitcoin’s Price

Strategy currently holds 650,000 bitcoins in its corporate reserves. This represents a significant mass, amounting to 3.1% of the total supply of the pioneering cryptocurrency. As such, anything that happens with Strategy will have repercussions on BTC’s price and vice versa. This is why JPMorgan analysts believe everything now depends on the company’s decisions.

The main objective of the firm’s management is to keep the ratio between the value of its Bitcoin reserves and the company’s valuation above 1. If this avoids the unfortunate need to sell part of its cryptocurrency reserves, the battle would be partially won.

This scenario would be fully decisive for Bitcoin’s short-term price to offer hope to investors. For now, it is impossible to know for certain whether the company will be able to achieve this objective, on which not only it depends, but also a vast network of investors of all sizes.

In any case, the most positive scenario for the company in the immediate term would mean that the worst for Bitcoin is already behind us.

At Thursday’s market close, MSTR shares fell by -1.26%. This keeps them below $200 per share. Meanwhile, the price of BTC has declined by -1.72% and, at the time of writing, is trading below $90,000 per coin.