Michael Saylor issues another Bitcoin "signal flare," as Bitcoin falls below $86,000, capturing market attention.

“There are no tariffs on the orange dot.” On November 30, Beijing time, Michael Saylor, founder of MicroStrategy (now renamed Strategy), once again posted his famous Bitcoin Tracker chart on social platform X.

Based on past experience, this is almost a signal he released for his company about to announce a Bitcoin increase.

As the market held its breath waiting for the next move from Strategy, on the morning of December 1, the cryptocurrency market experienced a collective plunge. Bitcoin briefly fell below $86,000, with a daily drop of over 5%.

01 Celer's predictable signal

Michael Saylor's release of the Bitcoin Tracker has created a highly predictable market signal.

Investors in digital currency who are familiar with his tactics know that basically every time he releases this Tracker, the next day the Strategy will announce how much Bitcoin they have bought again.

This regularity is so strong that a consensus has been formed in the crypto community that says “Saylor's Tracker, check the increase in holdings the next day.”

This has become a small pattern in the market - Saylor issues the Tracker, and then the next day there is a buy announcement.

Based on historical data, Strategy company has made 80 Bitcoin purchases since 2020, with a total holding of approximately 639,835 BTC and an average purchase cost of about 73,971 dollars.

In the most recent disclosure on September 22, Strategy increased its holdings by 850 Bitcoins at a price of $99.7 million.

02 Market Turbulence

Just as Seller sent out signals and the market anticipated the new round of buyback announcement from Strategy, the cryptocurrency market experienced a significant drop on the morning of December 1.

According to data, Bitcoin briefly fell below $86,000 during the trading session, with an intraday decline of over 5%; Ethereum also saw a decline of over 5%, falling below $2,900.

As of the time of writing, Bitcoin is at $86,600, down 4.22%; Ethereum is at $2,837, down 5.35%.

Other major cryptocurrencies also fell, with XRP and Dogecoin dropping over 6%, and Solana and Cardano down nearly 6%.

03 Liquidation Disaster

The sudden drop has led to a large number of leveraged traders facing liquidation.

Coinglass data shows that within 24 hours, the total liquidations of cryptocurrency contracts reached $528 million, with the number of liquidated individuals totaling 177,200.

Among them, long positions liquidated amounted to $466 million, while short positions liquidated totaled $61.75 million. The largest single liquidation occurred on Binance-ETHUSDC, valued at $14.4817 million.

This data clearly reflects the impact of the market's volatility on leveraged traders.

04 Reasons Behind the Decline

The recent crash in cryptocurrency prices may be related to a rumor circulating in the market concerning Federal Reserve Chairman Jerome Powell.

It is said in a “small essay” that “Powell will announce his resignation at an emergency meeting held at 7 PM Eastern Time on December 1.”

However, as of now, mainstream foreign media have not reported related news. Analysts point out that the aforementioned rumors are most likely false news.

Meanwhile, U.S. President Trump said on Sunday that he has decided on the candidate for the next chairman of the Federal Reserve.

This news has also increased uncertainty in the market. Trump has previously made it clear that he hopes his nominee will be able to lower interest rates.

05 Market Analysis Perspective

Sean McNulty, head of derivatives trading for FalconX in the Asia-Pacific region, stated: “The market started December with strong risk aversion. The most concerning aspect is the low inflow of funds into Bitcoin exchange-traded funds, and the absence of buyers on dips.”

McNulty further pointed out: “We expect structural resistance to continue this month. We are watching the $80,000 threshold for Bitcoin, which will be the next key support level.”

Bloomberg analysis suggests that the foundation of the cryptocurrency market remains unstable - this round of selling, which lasted for several weeks, began in early October when leveraged positions amounting to about $19 billion were liquidated.

Just a few days ago, Bitcoin reached a historic high of $126,250.

06 Strategy's Bitcoin Strategy

Michael Saylor and Strategy have become a bellwether for institutional investment in Bitcoin.

According to the latest Tracker information released by Seller, the Strategy's Bitcoin investment portfolio has soared to an astonishing $70.1 billion.

The investment strategy of Strategy for Bitcoin has always been consistent, which is to continuously accumulate Bitcoin.

Continue to increase holdings during market price fluctuations, in line with the company's consistent philosophy of “continuously accumulating Bitcoin.”

With the market plummeting, whether Strategy will continue to implement the strategy of buying on dips has become the focus of the market's attention.

07 Market Outlook

The upcoming week will provide a key snapshot of the momentum of the U.S. economy, as policymakers weigh the trajectory of interest rates until 2026. The data may influence market expectations regarding whether the Federal Reserve will continue the rate-cutting cycle.

Treasury Secretary Basant, who is in charge of the selection process for the Federal Reserve Chair, said last week that Trump may announce his nomination before Christmas on December 25.

As the Federal Reserve resumes slow interest rate cuts, Trump's dissatisfaction with Powell is escalating, and he has clearly stated his desire to nominate a Federal Reserve chairman who will be more resolute in pushing for rate cuts.

Hotcoin Research's latest view states: “After experiencing the years 2024-2025, the structure of market participants will be completely different. The increase in the proportion of institutional funds means that future price fluctuations will be more driven by fundamentals and data, with shorter-term sentiment influences relatively weakened.”

The organization further pointed out that subsequent institutional games and rational pricing will become the norm. The Bitcoin market in 2026 will be more mature and rational, which does not mean a lack of trading opportunities, but rather that the drama of getting rich quickly or suffering huge losses will be harder to reenact.

Future Outlook

The market is always speculating about Saylor's next move, but one thing is certain: his Twitter account has become a barometer for the Bitcoin world.

As investors are still digesting the fact of the market crash, everyone's attention is focused on whether Strategy will announce a new round of Bitcoin accumulation as scheduled. If history repeats itself, then this drop may just be a small interlude in a long-term bull market.

In the world of cryptocurrency, the only constant is change itself, but the belief in Bitcoin by Saylor remains unwavering.