Institutional Buying Tames Bitcoin's Wild Swings

Veteran investor Larry Lepard has likened Bitcoin to 'a wild animal', saying that its steep drawdowns are part and parcel of its nature, but they have been getting less severe.

According to Lepard, a founder and managing partner at Equity Management Associates, Bitcoin's deep draws downs in the past have been significantly lessened in percentage terms with the maturing of the asset. He noted that while Bitcoin 'just fools you all the time, and it's unpredictable,' its drawdowns, which have fallen from 90% in its earliest days to about 55% in the current pullback, are like a wild animal.

Lepard remained bullish on both Bitcoin and Strategy (MSTR), saying that Executive Chairman Michael Saylor should hold rather than sell his BTC. 'If I had any advice for Michael Saylor, it would be just shut up and sit on your hands,' Lepard said, adding that 'the only thing that really matters here is the price of Bitcoin.'

The remarks come after Strategy recently made a Bitcoin sale to support its STRC preferred shares. Lepard argued that moves like this are far less important than the trajectory of Bitcoin's price, which he said would ultimately solve the company's problems.