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Bitcoin becoming more appealing to institutional investors may come at the cost of the thrill that attracts retail investors, according to Strategy executive chairman Michael Saylor.
“You want the volatility to decrease so the mega institutions feel comfortable entering the space and size,” Saylor told Natalie Brunell on the Coin Stories podcast published to YouTube on Friday.
Michael Saylor says it is a “conundrum”
“The conundrum is, well, if the mega institutions are going to enter, if the volatility decreases, it is going to be boring for a while, and because it’s boring for a while, people’s adrenaline rush is going to drop,” Saylor explained.
“It’s like they had this big high and now the adrenaline is wearing off and they’re a little bearish.”Saylor said this is the “growing stage” and a natural part of Bitcoin’s (BTC) life cycle, and the volatility “coming out” of the asset is a good sign.
His comments come as some market participants question why Bitcoin’s price has stalled after hitting a new high of $124,100 on Aug. 14. At the time of publication, Bitcoin is trading at $115,760, close to its $114,618 price level nearly a month earlier on Aug. 21, according to CoinMarketCap.
Bitcoin is up 81.25% over the past 12 months. Source: CoinMarketCapIt was widely speculated that the US Federal Reserve’s Sept. 17 interest rate cut was mostly priced in, but some analysts have opined that further cuts later this year could push Bitcoin and other crypto assets higher.
Bitcoiners are divided on where the price will go
However, Bitcoiners are divided on where the asset’s price is headed for the rest of the year.
BitMEX co-founder Arthur Hayes sees $250,000 by year-end, several others are calling for around $150,000, while Bitcoin analyst PlanC doesn’t expect the peak to come this year at all.
Meanwhile, crypto analyst Benjamin Cowen recently said that Bitcoin may experience a “70% drawdown from whatever the all-time high ends up.”
Related: Bitcoin price $150K target comes as analyst sees weeks to all-time highs
Saylor said that Bitcoin innovation and new products are still in the early stages, as the market is still “getting educated.”
“This is the digital gold rush in the 10 years from 2025 to 2035,” he said, explaining there’s going to be many different business models and products created.
“There’ll be a lot of mistakes made and there’ll be a lot of fortunes created,” he added.
Publicly-listed treasury companies hold approximately $117.91 billion in Bitcoin at the time of publication, according to BitcoinTreasuries.NET.
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