Here’s What’s Behind the Crypto Market Downturn in 2022, According to MicroStrategy CEO Michael Saylor

Here’s What’s Behind the Crypto Market Downturn in 2022, According to MicroStrategy CEO Michael Saylor

Bitcoin (BTC) bull and MicroStrategy CEO Michael Saylor is analyzing the components that he believes are driving the crypto market downturn at the begin of a brand new 12 months.

In a brand new Bloomberg interview, Saylor unveils two components that he says are contributing to the volatility skilled by the crypto markets up to now this 12 months.

“I feel that there’s a number of dynamics right here. If you take a look at the whole crypto ecosystem, you will have a set of regulatory uncertainty, particularly regulatory uncertainty round stablecoins and crypto tokens and whether or not or not they’re securities. And that creates a bit bit of hysteria.

You have a number of leverage offshore. You have a number of crypto exchanges that may commerce with up to 20x leverage. And these crypto exchanges have many, many tokens which can be cross-collateralized. Between them and the decentralized finance [DeFi] exchanges, you may get a lot greater than 20x leverage. So that’s the second supply of volatility.”

According to Saylor, Bitcoin is at present providing a “nice entry level” for establishments particularly as legendary traders akin to Bill Miller allocate an enormous portion of his portfolio to the flagship cryptocurrency.

“I really feel prefer it’s consolidating at this degree. This is a good entry level for institutional traders. I discuss to excessive net-worth people, household places of work, public firm executives, non-public firm house owners and so they watched Bitcoin run up in 2021. And there are lots of people that will be afraid to personal it if it was going up 400% a 12 months.

But in the event that they’re watching it and it’s 40% off the all-time excessive and it’s consolidating. And they see that it’s being embraced by folks like Bill Miller, by very well-respected traders. It’s being embraced by the regulators, it’s being embraced by senators and congressmen and public traders and public corporations. They are this as like a very good entry level.”

Bitcoin is buying and selling at $36,459 at time of writing, down by over 24% from the 2022 excessive of $47,979.

I

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto electronic mail alerts delivered instantly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp
Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl should not funding recommendation. Investors ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your personal danger, and any loses you might incur are your duty. The Daily Hodl doesn’t advocate the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Daily Hodl an funding advisor. Please observe that The Daily Hodl participates in affiliate marketing online.

Featured Image: Shutterstock/prodigital artwork/Natalia Siiatovskaia



https://dailyhodl.com/2022/01/22/heres-whats-behind-the-crypto-market-downturn-in-2022-according-to-microstrategy-ceo-michael-saylor/

Recommended For You

About the Author: Daniel