Bitcoin News Today: Bullish Saylor Defies Bitcoin's Plunge and Institutional Warnings

Michael Saylor, executive chairman of Strategy, has doubled down on his bullish stance for Bitcoin, arguing that the cryptocurrency's volatility has decreased despite growing institutional adoption. Speaking in recent interviews, Saylor dismissed concerns that Wall Street's entry into the market has exacerbated price swings, noting that Bitcoin's annualized volatility has fallen from 80% in 2020 to roughly 50% today. He projected further reductions as the asset matures, estimating it could stabilize at 1.5 times the volatility of the S&P 500, while outperforming it by the same margin.

The market, however, has faced turbulence. Bitcoin dropped nearly 12% over the past week to $91,616, wiping out 2025 gains and dragging Strategy's mNAV (market net asset value) and MSTR shares downward. Strategy's mNAV multiple has fallen to 1.11x, down from 1.52x when Bitcoin hit its $125,100 peak in October. Meanwhile, MSTR shares closed at $206.80 on Tuesday, reflecting an 11.50% decline over five days. Despite the downturn, Saylor insisted the company is "engineered to take an 80 to 90% drawdown and keep on ticking," emphasizing its resilience.

The firm's Bitcoin holdings, now 649,870 BTC valued at $59.59 billion, remain central to its strategy. However, Saylor's confidence faces scrutiny as institutional risks emerge.

JPMorgan analysts warned that MSCI's potential exclusion of Strategy from major equity indices - such as the Nasdaq 100 and MSCI World - could trigger $2.8 billion in passive outflows if implemented. The index provider is consulting until December 31, 2025, with a final decision expected by January 15, 2026 according to reports. Analysts noted that such a move would erode MSTR's liquidity and reputational standing, complicating its ability to raise capital.

Internal confidence appears mixed. Strategy's VP and CAO, Jeanine Montgomery, recently sold $8,967 in shares under a Rule 10b5-1 trading plan to cover tax obligations. While this transaction does not reflect dissent from Saylor's strategy, it highlights the volatility faced by stakeholders. Meanwhile, Saylor remains unfazed, asserting that Bitcoin's long-term trajectory is "stronger than ever" despite short-term challenges.

The broader market remains polarized. Veteran trader Peter Brandt has cautioned that Bitcoin's price action mirrors historical soybean bubble patterns, warning Strategy could become "underwater" if his thesis holds. Conversely, Abu Dhabi's Investment Council recently tripled its Bitcoin ETF stake to $518 million, signaling institutional confidence in the asset's long-term potential.

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