Bitcoin's $150,000 Delay Blamed on Short-Term Selling, Says Saylor

Michael Saylor, the founder of Strategy, has attributed the delay in Bitcoin reaching $150,000 to the selling off of the cryptocurrency by holders who lack a long-term investment perspective. In an interview on the Coin Stories podcast on May 9, Saylor explained that the current market dynamics are characterized by a rotation where non-economically interested parties are exiting the asset. This sell-off is occurring simultaneously with the entry of a new cohort of investors into the market.

Saylor highlighted that a significant portion of Bitcoin is held by entities such as governments, lawyers, and bankruptcy trustees, who do not possess a long-term investment mindset. As Bitcoin's price began to rally, these trustees saw an opportunity to liquidate their holdings for immediate gains. Saylor noted, "So I think people less committed to the long term have taken the opportunity to exit the market and a whole new class of investors are entering by way of ETFs and by way of Bitcoin treasury companies."

The price of Bitcoin reached an all-time high of $109,000 on January 20, just hours before the presidential inauguration. Following this peak, the cryptocurrency experienced a downtrend, dropping to as low as $76,273 on April 9. However, it began to show signs of recovery and reclaimed the $100,000 mark on May 8, following the proposal of tariffs by the US President. This recent price surge has pushed Strategy’s Bitcoin holdings to 50.27% above their average Bitcoin purchase price of $68,569. At the time of the interview, the firm held 555,450 Bitcoin, valued at approximately $57.23 billion.

Saylor also expressed surprise at the shift in sentiment towards Bitcoin by the US government. He noted that while he anticipated some level of acceptance, he did not expect the rapid and enthusiastic embrace of Bitcoin by the government and its cabinet members over the past six months. This shift has been marked by the establishment of the Strategic Bitcoin Reserve, which holds Bitcoin forfeited as part of criminal or civil asset forfeiture proceedings. However, Saylor did not anticipate the government's stance to change so quickly following the presidential inauguration.