Michael Saylor, co-founder of Strategy, believes that with the rise of Bitcoin’s institutionalization, interest from retail investors may decline as this asset becomes “boring.” He discussed this during a podcast with Natalie Brunell.
This is reported by Business • Media
Bitcoin Consolidation and Changing Market Sentiments
The conversation covered the company’s strategy for accumulating Bitcoin, the differences between this asset and stocks, as well as the steps for including Strategy in the S&P 500 index. Although the company has already qualified, it has not yet been included in the index.
One of the key topics was the bearish sentiment among investors. Saylor explained that the lack of sharp price spikes has led to some disappointment among market participants.
“I think 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.”
He emphasized that this does not indicate a loss of trust in cryptocurrency, but rather the necessity to cover financial obligations.
Decreasing Volatility and Prospects for Institutions
According to the expert, large Bitcoin holders have already sold about 5% of their assets, and the market absorbed this volume without significant upheaval. Saylor noted that Bitcoin’s volatility is gradually decreasing, which is a positive signal for the further development of the market.
Reducing price fluctuations, he said, will make the digital asset more attractive to large institutional investors, such as asset managers. However, if large companies start actively entering this market, Bitcoin may become less dynamic and lose some of its appeal for retail investors who are accustomed to high volatility and quick profits.
A similar trend has been observed for some time: experts have repeatedly pointed out the gradual decrease in Bitcoin’s volatility due to the emergence of new institutional players in the market.