Saylor Sees Institutional Support as Key to Bitcoin's Long-Term Prospects

Michael Saylor, the founder of Strategy, believes that Bitcoin is not cheap just because it has dropped below $100,000. In his view, this price dip is relatively mild compared to other drawdowns Bitcoin has experienced in the past five years.

Saylor points out that Bitcoin's value has fluctuated significantly since August 2020, with five major drawdowns occurring over that time period. He argues that investors should be looking at four-year cycles or longer when evaluating Bitcoin's price, rather than focusing on short-term charts.

The key factor in Saylor's argument is the growth of institutional support for Bitcoin. He claims that 75% of major banks now back Bitcoin in some form, up from almost zero two years ago. Additionally, he notes that about 100 Bitcoin ETFs hold more than $100 billion combined, a market that didn't exist before 2024.

Saylor also highlights Bitcoin's dominance in the crypto market, which has climbed back to around 68% after cratering to 41% in 2021. He attributes this growth to Bitcoin's code being copied and its security record, with many other cryptocurrencies having been hacked.