Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), is pushing back hard against claims that Wall Street’s deepening involvement in Bitcoin is destabilizing the cryptocurrency, arguing instead that volatility is actually cooling and his firm remains aggressively bullish.
In an interview, he said Bitcoin has become more stable since he started buying it for Strategy in 2020.
Saylor says Bitcoin is getting steadier and not changing price as much
Saylor said Bitcoin was unstable when he first bought it for Strategy in 2020. The price fluctuated sharply, almost every day at the time, and the annualized volatility was approximately 80%. Even the most experienced investors struggled to predict what would happen next, so people lost or gained a significant amount of money in a very short time, as the price swings were massive.
However, he said the price is steadier now than ever before because volatility has decreased to 50% over the last few years. Saylor explained that many institutional investors have been purchasing a significant amount of Bitcoin, thereby strengthening the market and making it less susceptible to small trades. He also said that the rules have improved, and more people are aware of how Bitcoin works, which makes the market more stable and predictable.
Saylor said the trend will continue because he expects the volatility to drop by about 5% every few years. He explained that the large swings in the price of Bitcoin will eventually grow smaller over time, and investors will hold the coin for a long time without worrying about sudden drops.
According to him, BTC still has strong profits because it’s only one and a half times more volatile than the S&P 500 index, yet it now grows about one and a half times faster. He said the coin is a safer and more reliable investment, and these qualities will attract more people and institutions to invest in it in the future.
Saylor also mentioned that investors need to understand that it is very normal to have short-term drops even when BTC is becoming more stable, because it does not mean the coin is failing or losing value. He advised investors not to panic simply because the price fell temporarily. After all, the overall trend shows the market is still growing stronger than ever.
Saylor says his company can handle big drops in the price of Bitcoin
Saylor stated that Strategy can withstand the heat when the price of Bitcoin drops due to its careful planning, strong financial structure, and substantial holdings of 649,870 BTC worth around $61.7 billion.
The company’s market net asset value (mNAV) dropped to 1.11x from around 1.52x when Bitcoin reached $125,100 in October. This indicates that while the market and the company’s stock, MSTR, can fluctuate rapidly in the short term, the company itself is robust and well-prepared to handle these changes without panic.
Saylor said Strategy can handle drawdowns of 80 to 90% in the price of Bitcoin without risking its survival or ability to continue accumulating Bitcoin. He explained that the company is focused on long-term growth rather than reacting to short-term losses, which makes it more resilient to fluctuations.
Even with his confidence, the Strategy CEO still acknowledged that traders, such as veteran trader Peter Brandt, had stated that BTC could experience even greater losses in the future. These claims were based on historical market patterns, such as the soybean bubble in the 1970s, but Saylor said the examples do not change the fact that Strategy is well-prepared for extreme market conditions.
Analysts also noted that Wall Street has significant influence in Bitcoin, but Saylor countered that Strategy’s long-term approach will protect it from external pressure or short-term market fluctuations. He explained that his company doesn’t chase after short-term gains or react to temporary drops; instead, discipline is what keeps the company going strong and gives it an advantage over smaller investors who are exposed to panic selling.
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