The increasing attraction of Bitcoin for institutional investors may diminish the excitement that draws retail investors, according to Strategy’s executive chairman, Michael Saylor.
“To welcome more mega institutions into the space, we need to see a reduction in volatility,” Saylor mentioned to Natalie Brunell on the Coin Stories podcast released on YouTube last Friday.
Saylor describes it as a “conundrum”
“The conundrum lies in the fact that while mega institutions entering the market may lead to decreased volatility, it could also make the market feel uneventful for a period, resulting in a decline in the adrenaline rush for investors,” Saylor elaborated.
“It’s akin to experiencing a high and then feeling a drop in energy, leading to a slightly bearish sentiment.”
Saylor characterized this as part of the “growing stage” of Bitcoin’s (BTC) life cycle, suggesting that the asset maturing and experiencing decreased volatility is a positive development.
His remarks were made as participants in the market expressed confusion over Bitcoin’s price stagnation after reaching a new peak of $124,100 on August 14. As of publication, Bitcoin stands at $115,760, not far from its $114,618 price point nearly a month prior on August 21, according to CoinMarketCap.
Speculation surrounded the US Federal Reserve’s interest rate cut on September 17, with many believing it had already been factored into the market; however, some analysts suggest that additional cuts later in the year could boost Bitcoin and other cryptocurrencies.
Bitcoiners are split on future price movements
Despite this, Bitcoin enthusiasts are divided on the future of the asset’s price for the rest of the year.
BitMEX co-founder Arthur Hayes predicts a rise to $250,000 by year-end, while others are forecasting around $150,000, and Bitcoin analyst PlanC doubts the peak will occur this year.
Furthermore, crypto analyst Benjamin Cowen recently indicated that Bitcoin might face a “70% pullback from whatever the all-time high ultimately is.”
Related: Bitcoin price $150K target emerges as analyst foresees a return to all-time highs
Saylor emphasized that the innovation around Bitcoin and new offerings are still in their nascent stages as the market is in the process of “getting educated.”
“This is just the beginning of the digital gold rush, spanning from 2025 to 2035,” he remarked, noting that various business models and products will emerge.
“Many mistakes will be made, but also many fortunes will be created,” he added.
At the time of publication, publicly-listed treasury companies hold about $117.91 billion in Bitcoin, according to BitcoinTreasuries.NET.
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