Saylor defends Bitcoin despite the crash and minimizes volatility

Michael Saylor claims that 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?

Michael Saylor claims that Wall Street did not worsen Bitcoin’s drop

Michael Saylor does not mince words. In an interview granted Tuesday to Fox Business, the executive chairman of Strategy dismissed with a wave of the hand concerns about Wall Street’s impact 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 are seeing much less volatility“, he said. This statement comes as BTC’s price dropped nearly 12% in a week, slipping around 90,000 dollars. A drop that also weighed on MSTR stock, down 11.50% over five days.

Saylor relies on precise figures to support his point. In 2020, when he started massive Bitcoin accumulation for Strategy, annualized volatility was about 80%. Today, it oscillates around 50%. 

“Every few years, Bitcoin’s volatility should decrease by an additional five points “, he predicts. His goal? To see BTC reach a volatility equivalent to 1.5 times that of the S&P 500, while offering a “1.5 times better” performance.

This vision contrasts with that of many observers. Some analysts believe that the integration of Bitcoin into institutional portfolios, notably through spot ETFs, has created correlations with traditional markets. These links would strengthen bearish movements during stress phases. But for Saylor, this reading is wrong. “Bitcoin is stronger than ever“, he insists.

Unwavering confidence despite the turbulence

Strategy holds a record 649,870 BTC, valued at 59.59 billion dollars. However, the recent market correction has impacted the company’s financial indicators.

The ratio between Strategy’s market value and its Bitcoin assets (mNAV) has dropped from 1.52x to 1.11x. This decline reflects investors’ nervousness in the face of the market correction.

Faced with these turbulences, Saylor does not flinch. He even claims that an 80 to 90% drop in the Bitcoin price would not put Strategy in trouble. “The company is designed to absorb such a loss and continue operating“, he explains. 

This assurance is based on a thoughtful financial structure, notably avoiding dilution of long-term shareholders through the use of preferred shares.

This accumulation strategy is continuing to accelerate. Strategy recently acquired 8,178 BTC for 835 million dollars, multiplying its weekly buying pace by twenty.

Not all observers share this optimism. Veteran trader Peter Brandt warned that Strategy could find itself “underwater” if Bitcoin followed the same pattern as the 1970s soybean bubble. 

Meanwhile, Peter Schiff continues his attacks, calling the company’s business model a “scam.” But for now, Saylor refuses to debate and stays the course.

Saylor’s approach crystallizes debates about Bitcoin’s future. On one hand, encouraging signals are emerging: Strategy received a B- rating from S&P, banks like JP Morgan are exploring BTC-backed credit. On the other, recent volatility rekindles skeptics’ fears. The coming months will reveal if this unwavering conviction will withstand the test of time and markets.