Strategy’s executive chairman emphasizes declining volatility despite recent price pullback
Michael Saylor, executive chairman of Strategy, has downplayed claims that Wall Street’s involvement has negatively influenced Bitcoin’s price, highlighting that the cryptocurrency is becoming progressively less volatile despite a recent 12% decline. His remarks provide a counterpoint to analysts who see institutional activity as amplifying market swings.
Bitcoin Volatility Trending Lower
Speaking to Fox Business, Saylor noted that when he began buying Bitcoin for Strategy in 2020, the asset had an annualized volatility of around 80%. Today, he claims it has dropped to roughly 50%, suggesting Bitcoin is gradually stabilizing as it matures.
“Every few years, Bitcoin is likely to reduce another five points of volatility as it matures, eventually performing about 1.5 times better than the S&P 500,” Saylor stated. He added that the asset’s reduced swings reflect its increasing resilience amid growing adoption.
Strategy’s Position and Market Performance
Strategy currently holds 649,870 Bitcoin, valued at $59.59 billion, according to SaylorTracker. Despite Bitcoin’s recent pullback to $91,616, Strategy’s market-adjusted net asset value (mNAV) slipped to 1.11x from 1.52x during Bitcoin’s October peak of $125,100. Shares of Strategy (MSTR) mirrored this movement, closing recently at $206.80, down 11.5% over five days.
Saylor emphasized that the company is designed to withstand extreme market swings. “The company is engineered to take an 80 to 90% drawdown and keep on ticking. We’re pretty indestructible,” he said, underscoring the firm’s confidence in its long-term strategy.
Industry Perspectives and Risks
While Saylor remains bullish, some analysts caution that Strategy could face challenges if Bitcoin’s price trajectory follows historical market bubbles. Veteran trader Peter Brandt, for instance, suggested that Bitcoin might mirror patterns seen in the 1970s soybean bubble, which could leave Strategy vulnerable.
Saylor’s comments reinforce the narrative that Bitcoin is transitioning from a high-volatility speculative asset to a more mature, resilient store of value. Even amid short-term corrections, Strategy’s approach and long-term holdings reflect confidence in Bitcoin’s continued performance, highlighting the growing institutional commitment to the cryptocurrency market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.