Michael Saylor, MicroStrategy CEO and a Bitcoin (BTC) bull, has been analyzing what he believes is causing the crypto market price decline since the start of the new year.
In a newly published Bloomberg interview, Saylor explains two factors he says have contributed to the volatility that crypto markets have experienced from the start of this year so far.
“I believe there is a lot of dynamics at work here. If you look at the entire crypto ecosystem, you’ll see that we have a number of regulatory uncertainties, particularly around stablecoins, crypto tokens, and whether they are securities or not. And that causes some concern.
You have a lot of leverage off-shore. You have many crypto exchanges that can trade with up to 20x leverage. And there are many cross-collateralized tokens on these crypto exchanges. These and decentralized finance [DeFi] between exchanges, you can get much more than 20x leverage. As a result, this is the second source of volatility.”
According to Saylor, despite the decline, Bitcoin currently provides a “great entry point” for institutions, especially as legendary investors like Bill Miller are dedicating a significant portion of their portfolios to the flagship cryptocurrency.
“I feel consolidated at this level. This is a great entry point for institutional investors.
I spoke with high net worth individuals, family offices, public company executives, private company owners who watched Bitcoin rise in 2021. If Bitcoin were to increase 400% per year, many people would be afraid to own it.
But if they’re interested in it [varlığın] they see it is 40% off and consolidated from its all-time high. And they see it being embraced by people like Bill Miller, by very reputable investors. It is embraced by regulators, senators and congressmen, public investors, and public companies alike. They see it as an excellent entry point.”
Bitcoin experienced a sharp drop today and fell below $35,000. The cryptocurrency, which has recovered somewhat at the time of writing, is trading at $35,438, down nearly 48 percent from its all-time high of $69,044.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.