Bitcoin’s growing appeal to institutional investors could come at the expense of the excitement that draws in retail traders, says MicroStrategy executive chairman Michael Saylor.
Speaking with Natalie Brunell on the Coin Stories podcast released Friday, Saylor noted, “You want the volatility to decrease so the mega institutions feel comfortable entering the space and committing size.”
He described it as a “conundrum”: “If the mega institutions are going to enter and volatility declines, it’s going to feel boring for a while. And when it feels boring, the adrenaline rush that attracts people will fade.”
“It’s like they had this big high and now the adrenaline is wearing off and they’re a little bearish.”
Saylor described the current phase as a “growing stage,” calling it a natural part of Bitcoin’s evolution. He added that the reduction in volatility is actually a positive development for the asset.
His remarks follow growing questions from traders about Bitcoin’s recent slowdown after reaching a record high of $124,100 on Aug. 14. As of publication, the cryptocurrency is trading at $115,760 — nearly unchanged from its $114,618 level on Aug. 21, according to CoinMarketCap.
Speculation has been rife that the U.S. Federal Reserve’s Sept. 17 interest rate cut was largely priced in, though some analysts suggest that additional cuts later this year could lift Bitcoin and other cryptocurrencies.
The crypto community remains divided on Bitcoin’s year-end trajectory. BitMEX co-founder Arthur Hayes projects a $250,000 price, several others target around $150,000, while analyst PlanC does not anticipate a peak this year. Meanwhile, crypto analyst Benjamin Cowen has warned that Bitcoin could face a “70% drawdown from whatever the all-time high ends up being.”
Saylor emphasized that Bitcoin innovation and new products are still in their early stages, as the market continues “getting educated.” He described the next decade as a “digital gold rush” from 2025 to 2035, with numerous business models and products expected to emerge.
“There’ll be a lot of mistakes made, and there’ll be a lot of fortunes created,” Saylor added.
At the time of publication, publicly listed treasury companies hold roughly $117.91 billion in Bitcoin, according to BitcoinTreasuries.NET.
