Michael Saylor, a Bitcoin (BTC) bull and the CEO of MicroStrategy, is examining the elements he believes are driving the crypto market slump at the start of a new year.
Saylor reveals two things that he believes are leading to the crypto markets’ volatility so far this year in a new Bloomberg interview.
“I think that there’s a lot of dynamics here. If you look at the entire crypto ecosystem, you have a set of regulatory uncertainty, especially regulatory uncertainty around stablecoins and crypto tokens and whether or not they’re securities. And that creates a little bit of anxiety.
You have a lot of leverage offshore. You have a lot of crypto exchanges that can trade with up to 20x leverage. And those crypto exchanges have many, many tokens that are cross-collateralized. Between them and the decentralized finance [DeFi] exchanges, you can get much higher than 20x leverage. So that’s the second source of volatility.”
According to Saylor, Bitcoin is currently providing a “excellent entry opportunity” for institutions, particularly because legendary investors like Bill Miller have allocated a significant amount of their portfolio to the flagship cryptocurrency.
“I feel like it’s consolidating at this level. This is a great entry point for institutional investors. I talk to high net-worth individuals, family offices,”
“public company executives, private company owners and they watched Bitcoin run up in 2021”
. “And there are a lot of people that would be afraid to own it if it was going up 400% a year.
But if they’re staring at it and it’s 40% off the all-time high and it’s consolidating. And they see that it’s being embraced by people like Bill Miller, by very well-respected investors. It’s being embraced by the regulators, it’s being embraced by senators and congressmen and public investors and public companies. They are looking at this as like a good entry point.”
So, At the time of writing, bitcoin was trading at $36,459, down from a peak of $47,979 in 2022.
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