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

Source: CritpoTendencia Original Title: The resilience of Strategy will be key for Bitcoin’s price, according to JPMorgan Original Link: According to experts at financial giant JPMorgan Chase, the resilience of Strategy will be key for Bitcoin’s price in the short term. It should not be overlooked that this company is the largest corporate holder of the leading digital currency. For days now, the company has been facing an extremely complicated situation.

Rumors intensified following statements from the firm’s CEO about 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 its investors for more than 20 months. A few weeks ago, JPMorgan itself warned of the possibility that the firm could be excluded from some key indexes in which it is listed. Billions of dollars in funding for Strategy depend on these indexes, including MSCI.

Despite all the negative atmosphere generated as a result of these events, the US bank has toned down its rhetoric. The lender’s strategists now offer a less pessimistic outlook and point to the company’s resilience. They note that the short-term stability of Bitcoin’s price depends on this resilience.

The relationship between Strategy and Bitcoin’s price

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

The main goal of the firm’s board is to keep the ratio between the value of its Bitcoin reserves and the company’s valuation above 1. If this allows it to avoid the painful need to sell part of its cryptocurrency reserves, the battle would be partially won.

This scenario would be absolutely decisive for Bitcoin’s short-term price to offer hope to investors. For now, it’s impossible to know for certain whether the company will be able to achieve this goal, on which not only it depends, but also a vast chain 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 over.

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