CMC News

$BTC Volatility Decline Attracts Mega Institutions, Saylor Predicts

$BTC price consolidation reflects a healthy market transition rather than weakness, according to #Strategy Executive Chairman #MichaelSaylor. The digital asset's sideways movement signals early adopters are taking profits while institutional investors prepare for larger allocations.

Speaking on Natalie Brunell's podcast, Saylor emphasized that $BTC's 99% annual gain demonstrates underlying strength. The reduced volatility creates an environment where major institutions feel comfortable entering the market at scale.

Early Bitcoin holders who purchased at single-digit prices are naturally liquidating modest portions for real-world needs. This process mirrors employees of high-growth startups exercising stock options, representing market maturity rather than declining confidence.

The transition period sees #volatility decreasing as "OG" holders cash out strategic amounts. Saylor compared this to natural market evolution, where early risk-takers make room for larger, more stable capital sources.

Institutional hesitation stems from decades of traditional equity and bond frameworks that struggle to adapt to Bitcoin's unique characteristics.

However, these organizations will eventually embrace digital assets as market conditions force strategic reconsideration. The current environment positions $BTC for sustained growth once major funds complete their entry preparations.

Strategy's Bitcoin-backed credit products aim to provide cash-flow-like qualities to the asset through over-collateralized instruments. These products offer yields up to 12% while maintaining heavy collateralization with #Bitcoin reserves.

Saylor dismissed concerns about #Bitcoin lacking traditional cash flows, noting that valuable assets like gold, land, and art also generate no income streams. The "perfect money" requires no cash flows to maintain its store-of-value properties effectively.