MicroStrategy CEO and Bitcoin whale with more than 17,000 BTC, Michael Saylor, analyzes what he believes is causing the crypto market to decline at the start of the new year. As Kriptokoin.com, we are relaying the details of Saylor’s Bloomberg interview.
Michael Saylor lists sources of collapse
In a new Bloomberg interview, Saylor explains two factors he says have contributed to the volatility that the crypto market has experienced so far this year:
I think there are too many dynamics. If you look at the entire crypto ecosystem, you’ll see the regulatory uncertainty about stablecoins and tokens and the debate over whether they are securities or not. This is a little worrying.
Michael Saylor says leveraged trading is the second reason:
There is a lot of leverage in the market. There are numerous crypto exchanges that can trade with up to 20x leverage. And there are many cross-collateralized tokens on these crypto exchanges. Between these and DeFi exchanges, you can get much more than 20x leverage. So this is the second source of high fluctuations.
Institutional investor can evaluate Bitcoin price
According to Saylor, Bitcoin currently offers a “great entry point” for institutions, especially as it occupies a large part of the portfolio of legendary investors like Bill Miller:
I feel consolidated at this level. This is a great entry point for institutional investors. I talk to high net worth people, family offices, public company executives, private company owners and they watched Bitcoin rise in 2021. And if it increased 400% every year, people would be afraid to invest in it.
Saylor also lists a number of positive factors in the market:
But if it’s 40% off the ATH level and it’s getting stronger, and they’re seeing it embraced by people like Bill Miller, very reputable investors. It is adopted by regulators, owned by senators and congressmen, public investors and public companies. They look at it as a good entry point.
Bitcoin is trading at $35,688.21 at the time of writing, down over 25% from the 2022 high of $47,979.