Bitcoin Bull and MicroStrategy CEO Michael Saylor analyzes the factors he believes are driving the crypto market downturn at the start of the new year in a recent rally. new job interview by Bloomberg.
“I think there is a lot of momentum here. If you look at the entire crypto ecosystem, you have a number of regulatory uncertainties, particularly regulatory uncertainties related to stablecoins and tokens and whether they are securities or not. That created a bit of unrest.
There’s also a lot of offshore leverage. There are many cryptocurrency exchanges that can trade with up to 20x leverage. And these crypto exchanges have many cross-collateralized tokens. Between CEX and DEX you can get much higher leverage than 20x. So that is the second source of volatility.”
According to Michael Saylor, Bitcoin currently offers a “great entry point” for institutions, particularly legendary investors like Bill Miller, who allocates a large chunk of his portfolio to BTC.
“I feel like it’s consolidating at that level. This is a great entry point for institutional investors. I speak to high net worth individuals, family offices, public company executives, and private company owners, and they’ve seen the price of bitcoin soar in 2021. And yes, many people will be afraid to own it when it grows at 400% per year.
But if you look at Bitcoin 24/7, it’s down 40% from its all-time high and is consolidating. And they found that it was being embraced by the likes of Bill Miller, very established investors. It is adopted by regulators, it is accepted by senators and congressmen, and by public investors and public companies. They see this as a good entry point.”
Bitcoin is trading at $35,407 at press time, down more than 25% from its 2022 peak of $47,979.
Source: TradingView
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