Michael Saylor discussed on the Coin Stories podcast why Bitcoin has yet to reach $150k. He attributes this to short-term holders selling off while new investors join the market. Despite a recent price recovery, there are still concerns about the sentiment of existing Bitcoin holders and the US government’s actions regarding Bitcoin. Saylor noted significant inflows into Bitcoin ETFs recently and expressed surprise at the warm embrace of Bitcoin by the government after Trump’s inauguration.
Bitcoin’s journey to a $150,000 valuation is still ongoing, and according to Michael Saylor, that’s largely due to a sell-off from short-term holders. The founder of Strategy, Saylor discussed this phenomenon on the Coin Stories podcast hosted by Natalie Brunell on 9th May. He suggested that while a fresh wave of investors is entering the market, many existing holders are not committed to the long haul.
Saylor pointed out that numerous stakeholders currently in the Bitcoin space do not possess a long-term investment mindset. He noted, “lots of non-economically interested parties are rotating out of the asset.” Many of these sellers include bankruptcy trustees and lawyers who once held large amounts of Bitcoin but are now taking the opportunity to cash in, thinking that it’s an ideal exit as the price rises.
He elaborated that this lack of commitment among existing holders is affecting market dynamics. With many leaving and a new group of investors coming in through avenues like ETFs, there’s a noticeable shift according to Saylor. Interestingly, he highlighted that significant Bitcoin holdings have become concentrated among governmental bodies and legal representatives, further complicating matters.
After hitting a record peak of $109,000 on January 20, just hours before Donald Trump’s inauguration, Bitcoin prices fell to a low of $76,273 by April 9 but have slowly been showing signs of recovery. As of May 8, Bitcoin managed to return above the $100,000 mark for the first time since early February, thanks to fluctuations related to recent trade talks proposed by Trump.
Saylor also shared that the average purchase price for Strategy’s Bitcoin investments stands at about $68,569, meaning their holdings are now performing 50.27% above that average. The firm currently holds about 555,450 Bitcoin, equating to approximately $57.23 billion in value based on current market rates.
On another note, Saylor expressed his views on the US government’s engagement with Bitcoin. Particularly, he was intrigued by the $564.7 million inflow into spot Bitcoin ETFs in recent days, pinpointing a major shift in investor sentiment. Interestingly, he was also critical of the government’s lag in creating a Strategic Bitcoin Reserve which Trump directed on 7th March, to hold forfeited cryptocurrencies, indicating he expected a more rapid shift in governmental attitudes towards Bitcoin following the inauguration of the Trump administration.
Saylor remarked, “I was surprised that the US embraced Bitcoin as radically as it has in the last six months.” He didn’t foresee the enthusiasm displayed by members of the Cabinet regarding Bitcoin investments, indicating a notable change in the landscape for cryptocurrency investment given the governmental endorsement.
