The Bitcoin (BTC) price correction isn't just hurting individual hodlers — the biggest players are suffering in more ways than ane.

Data from markets on March 5 revealed that MicroStrategy, which owns over 91,000 BTC, has seen its stock toll dive by more than half in just iii weeks.

MicroStrategy keeps buying BTC

On the day that the company confirmed that it had added another 210 BTC to its reserves at a price of $10 meg, MicroStrategy'southward stock hit local lows of $628. At its tiptop in Feb, MSTR traded at just over $1,300.

The volatility is a commentary on the ups and downs of Bitcoin in its latest bull run, which has been characterized past wild swings in both directions.

$MSTR (crimson) vs. BTC/USD (blue) chart. Source: Tradingview

Since offset to add Bitcoin to its balance canvass in August last year, however, the overall bear on on MSTR remains transformative. Prior to the motility, it barely traded above $100.

"They now agree 91,064 bitcoin on their balance sheet," Morgan Creek Digital co-founder Anthony Pompliano commented on the latest purchase.

"This may be one of the greatest displays of conviction in public market history."

Hayes: Bail resurgence could brand investors "exit Bitcoin"

That "conviction" may serve the company well far beyond the short term as Bitcoin's bull cycle is being challenged by macroeconomic headwinds.

For Arthur Hayes, one-time CEO of derivatives giant BitMEX, central bank policy could, in farthermost circumstances, cause capital letter to drain from cryptocurrency altogether.

The reason, he explained in a new weblog post this week, is that the Federal Reserve could choose to hike rates, causing pain for investors across the lath, only also come across periods of tape low rates, creating a groovy of volatility.

"I do not accept a model for an estimate of the ratio between the two, simply at a loftier level if global fiat liquidity can earn a real return again in regime bonds, information technology volition exit Bitcoin / crypto," he wrote.

"The whole betoken of this exercise is to preserve / grow purchasing ability against energy. If that can be washed in the most liquid asset, government bonds, then liquidity will accept the like shooting fish in a barrel option."

Should such an event occur in the future, Bitcoin would be more dependent on its technological premise, something which Hayes believes volition exist decidedly underwhelming without the large money on lath.

"The corporeality of remaining technological value is beyond my skills to estimate," he warned.

"However, it is much lower than the current fiat toll of Bitcoin today."
Arthur Hayes' anti-inflation options chart. Source: David Venturi/ Twitter

To counteract the chance, investors should have advantage of both cryptocurrency'south unparalleled potential and hereafter rate volatility.