The executive chairman of MicroStrategy, Michael Saylor, revealed in an interview for Fox Business that Bitcoin’s annual volatility is experiencing a significant reduction. The executive said that the metric fell from 80%, the crypto’s level when his company began buying in 2020, to 50% today, with the hope that the decline will continue as the market scales.
Although the price of BTC has experienced notable drops, they do not object to Saylor’s explanation of long-term volatility. The thesis behind Bitcoin’s reduction is that factors such as institutional adoption, the deepening of derivatives markets, and a broader base of long-term holders cushion price swings. Saylor stressed that the message is not that Bitcoin is “low risk,” but that the direction of volatility is pointing downwards as the asset progresses.
MicroStrategy’s strategy reflects this long-term perspective. The company consolidated its position as the largest corporate holder by acquiring another 8,178 BTC, bringing its holdings close to 649,870 BTC. The market will continue to monitor whether this trend of decreasing volatility is maintained, reinforcing the narrative that Bitcoin’s market structure is consolidating, despite cyclical bumps.
Source: https://youtu.be/OAVTMr9XuvE?si=2j4DncWrZ2xH5nTw
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