Bitcoin markets have maintained their gains so far into the new year. However, some larger players in the industry may sell related stocks, indicating a greater possibility of a market correction.
According to a Jan. 2 filing with the U.S. Securities and Exchange Commission, MicroStrategy CEO Michael Saylor has begun selling shares of the company. However, he previously said that proceeds from the sales would go toward purchasing more Bitcoin.
Saylor exercising stock options
Michael Saylor has cooperated with the regulatory body to exercise MicroStrategy stock options. According to the filing, he will sell 315,000 shares worth about $216 million.
On a fourth-quarter conference call, Saylor to explain He received a stock option in 2014 for 400,000 shares. He added that this will end in April if he does not exercise it by then.
“Nearly a decade ago, at my request, the company only paid me a salary of $1 and I chose not to be eligible for any cash bonuses.”
He said that exercising this option would enable him to address financial obligations “as well as obtain additional Bitcoin for my personal account.”
Saylor will sell 5,000 shares each trading day beginning on January 2 and ending on April 25. He said he would still own a “very significant” stake in the company even after the sale.
In late December, Saylor said the potential approval of a bitcoin exchange-traded fund could be the biggest development on Wall Street in 30 years.
Read more: Empower your investments with BTC price predictions
According to the Insider Tracker, which tracks the stock trades of CEOs, executives and members of Congress, Coinbase insiders have also unloaded the company's stock.
Furthermore, coin prices have fallen by 16% since sales began, it said. It has fallen 10% since the beginning of trading this year, falling to $157 after hours on January 2.
Anticipate a period of inventory slowdown
Moreover, investment strategists expect a slowdown in the stock market
“It is not uncommon for markets to pause to absorb a bull run of the magnitude seen in the just-concluded fourth quarter,” John Stoltzfus, chief investment strategist and managing director at Oppenheimer, wrote in a note to clients on Jan. 2.
The correction in the US stock markets is likely to be reflected in the cryptocurrency markets. However, it remained steady during the day at $1.81 trillion, with Bitcoin stable at $45,216 at the time of writing.
Additionally, several technical indicators, including the Puell Multiple, have indicated overbought conditions, which could be a sign of a pullback.