Michael Saylor says Bitcoin has become “much less” volatile despite the recent price drop. A statement that contradicts analysts pointing the finger at the arrival of Wall Street. But is the founder of Strategy right to remain so calm?
In brief
- Michael Saylor rejects the idea that Wall Street's entry increased Bitcoin's volatility.
- BTC volatility has fallen from 80% in 2020 to around 50% currently, according to Saylor.
- Strategy holds 649,870 BTC, valued at nearly $60 billion.
- MSTR stock fell 11.50% in five days, following Bitcoin's fall below $90,000.
Michael Saylor says Wall Street didn't make Bitcoin fall worse
Michael Saylor doesn't mince his words. In an interview with Fox Business on Tuesday, the executive chairman of Strategy dismissed out of hand fears about the impact of Wall Street on Bitcoin. For him, the arrival of traditional financial institutions has not weakened the digital asset. On the contrary, it would have stabilized it.
“ I think we're seeing much less volatility “, he said. This assertion comes as the price of BTC fell almost 12% in a week, sliding around $90,000. A decline which also weighed on MSTR shares, down 11.50% over five days.
Saylor relies on precise figures to support his point. In 2020, when he launched the massive Bitcoin accumulation for Strategy, the annualized volatility was around 80%. Today, it hovers around 50%.
“ Every few years, Bitcoin volatility is expected to decrease by another five points “, he predicts. His goal? See BTC reach a volatility equivalent to 1.5 times that of the S&P 500, while offering “1.5 times better” performance.
This view contrasts with that of many observers. Some analysts believe that the integration of bitcoin into institutional portfolios, particularly via spot ETFs, has created correlations with traditional markets. These links would reinforce bearish movements during phases of stress. But for Saylor, this reading is wrong. “ Bitcoin is stronger than ever “, he insists.
Unshakeable confidence despite turbulence
Strategy has a record holding of 649,870 BTC, valued at $59.59 billion. However, the recent market correction has impacted the company's financial indicators.
The ratio of Strategy's market value to its Bitcoin assets (mNAV) increased from 1.52x to 1.11x. This drop reflects the nervousness of investors in the face of the market correction.
Faced with this turbulence, Saylor does not blink. He even claims that an 80 to 90% fall in the price of bitcoin would not put Strategy in difficulty. “ The business is designed to absorb such a loss and continue operating “, he explains.
This insurance is based on a thoughtful financial structure, notably avoiding the dilution of historical shareholders through the use of preferential shares.
This accumulation strategy continues to accelerate. Strategy recently acquired 8,178 BTC for $835 million, increasing its weekly buying rate twenty-fold.
Not all observers share this optimism. Veteran trader Peter Brandt has warned that Strategy could find itself “underwater” if Bitcoin follows the same pattern as the soybean bubble of the 1970s.
For his part, Peter Schiff continues his attacks, describing the company's economic model as “a scam”. But for now, Saylor refuses the debate and stays the course.
Saylor's approach crystallizes debates about the future of Bitcoin. On the one hand, encouraging signals are emerging: Strategy obtained a B- rating from S&P, banks like JP Morgan are exploring BTC-backed credit. On the other hand, recent volatility is reviving the fears of skeptics. The coming months will reveal whether this unwavering conviction will stand the test of time and markets.
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