Saylor Downplays Wall Street Impact as Bitcoin Volatility Eases

Source: DefiPlanet Original Title: Saylor Downplays Wall Street Impact as Bitcoin Volatility Eases Original Link:

Bitcoin Market Stability Claims vs. Recent Volatility

Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), has dismissed concerns that Wall Street’s growing involvement in Bitcoin has increased market volatility, arguing instead that the asset has become more stable over time.

During a Fox Business interview, Saylor stated that Bitcoin volatility is actually decreasing. He noted that when Strategy began accumulating Bitcoin in 2020, the asset had an annualized volatility of roughly 80%. Today, he estimates this has dropped to approximately 50%, with expectations for further decline as Bitcoin matures.

Saylor projected that Bitcoin could shed another “five points of volatility” every few years, eventually aligning at about 1.5 times the volatility of the S&P 500 while delivering “1.5 times better performance.”

Market Reality Contradicts Optimism

Despite Saylor’s bullish outlook, Bitcoin experienced significant weakness this week, declining nearly 12% to approximately $91,616, erasing gains made earlier in the year.

Strategy’s own metrics reflect this market pressure:

• The firm holds 649,870 BTC valued at $59.59 billion
• mNAV multiple has dropped to 1.11x, down from 1.52x when Bitcoin reached $125,100 on October 5
• Strategy shares (MSTR) closed at $206.80, marking an 11.50% decline over the previous five days

Resilience Claims and Risk Assessment

Saylor remains confident in Strategy’s ability to weather downturns, claiming the company is “engineered to take an 80 to 90% drawdown and keep on ticking.” He emphasized that current leverage is “extremely robust,” with debt exposure trending toward 10-15% and moving toward zero.

He described the company as “pretty indestructible.” Bitcoin analyst Willy Woo supports this assessment, suggesting that Strategy is well-positioned to weather the next major crypto downturn without liquidating its BTC reserves.

However, trader Peter Brandt has expressed caution, warning that despite these assurances, Strategy could still face risks during severe market corrections.