Bitcoin Remains Strong Despite Recent Volatility, Says Saylor
Michael Saylor, in a recent Fox Business interview, rejected claims that increased Wall Street involvement has heightened Bitcoin's volatility. He argued instead that volatility has declined with greater institutional adoption.
Bitcoin experienced a 12% decline over the past week, falling to $91,616, which led to a drop in MicroStrategy's market net asset value (mNAV) and its stock (MSTR). MicroStrategy holds 649,870 BTC, valued at about $59.59 billion according to SaylorTracker.
The company's mNAV multiple decreased to 1.11x from 1.52x when Bitcoin reached its all-time high of $125,100 on October 5. Saylor estimates Bitcoin's annualized volatility has decreased from approximately 80% in 2020 to around 50% now, potentially settling around 1.5 times the volatility of the S&P 500, and noted that Bitcoin could outperform the S&P 500 by a factor of about 1.5.
MicroStrategy shares closed at $206.80 on Tuesday, down 11.50% over the preceding five days.
In broader market context, Bitcoin briefly fell below $90,000 for the first time since April. On November 17, Bitcoin exchange-traded fund (ETF) outflows totaled about $254 million, and Bitcoin dominance fell below 60% as Ethereum and other major altcoins declined.
