Co-founder of Strategy, Michael Saylor, shared his vision for the future of Bitcoin in a podcast with Natalie Brunell, discussing how the increasing participation of institutional investors could affect the asset. He noted that the asset may become less attractive to retail investors due to reduced volatility.
This is reported by Finway
Company Strategy and Market Impact
During the conversation, the strategy of accumulating Bitcoin by Strategy was discussed, along with the differences between the company’s stock and the cryptocurrency itself. Special attention was given to the fact that Strategy has qualified for inclusion in the S&P 500 index but has not yet made it. Saylor emphasized that the company continues to work on strengthening its market position.
Changing Sentiments in the Bitcoin Market
While discussing bearish sentiments among investors, Michael Saylor explained that the current lack of sharp fluctuations in Bitcoin’s price affects the perception of the asset. He noted that the market is currently experiencing consolidation, and the total amount of assets outside the financial system exceeds $2.3 trillion.
“It seems to me that Bitcoin is consolidating, as we currently have $2.3 trillion in this asset that is outside the financial system. You cannot take a loan against it. […] People are rich on paper, but not in practice, as they need to sell Bitcoins to free up funds.”
Saylor emphasized that this does not indicate a loss of trust from investors in Bitcoin, but rather a need for liquidity to cover personal expenses. He also added that large holders, known as whales, have sold about 5% of their assets, and the market has successfully absorbed this volume.
According to Saylor, the decrease in Bitcoin’s volatility is a positive signal for large institutional players, particularly asset managers.
He stressed that the entry of large companies into the cryptocurrency market will inevitably lead to a decrease in price movement dynamics. This, in turn, may reduce the enthusiasm of retail investors who are accustomed to sharp jumps and the adrenaline rush from volatility:
“But if large companies enter this market, it will become boring, at least for a while. This will lead to a decline in enthusiasm among people. They had these jumps, and now they will be deprived of the adrenaline. Therefore, they are somewhat bearish. But this is natural for an asset of this kind,” Saylor emphasized.
The trend towards decreasing Bitcoin volatility has been repeatedly confirmed by experts, who note that the key reason for this is the growth of institutional presence in the market.