Strategy Co-Founder Michael Saylor Names the Reason Behind Bitcoin Price Fluctuations

Michael Saylor Explains Why Bitcoin Fluctuates—And It's Not What You Think

Folks often ask why Bitcoin bobs up and down like a cork in a storm. If it's the antidote to inflation and the US dollar's erratic mood swings, why does it often follow Wall Street's rhythm like a drummer in a jazz band? Well, Michael Saylor, co-founder of Strategy and a voice I listen to in the crypto din, recently put it in plain terms—and I think he's right on the money.

Let's not mince words: Bitcoin is the most liquid asset out there. It's tradable day and night, weekends and holidays included. And in times of panic? Traders don't sell what they want to—heck no—they sell what they can. That's where Bitcoin gets caught in the shuffle.

You see, when things hit the fan, the easy-to-sell stuff is the first to go, even if it's gold-plated. That's what Saylor was getting at. Bitcoin doesn't move in lockstep with stocks because it's tied to them—it moves because it's available. That's a critical distinction that even seasoned investors often overlook.

Let's talk turkey. Sure, Bitcoin's recent ride from $87,800 to below $81,500 spooked a lot of folks. But that dip had more to do with President Trump's trade tariff announcement than anything intrinsic to Bitcoin. Panic-selling swept across global markets, and Bitcoin—because it's so liquid—was an easy sell.

Saylor's take? In the short term, Bitcoin acts like a risky asset. But over the long haul, its destiny isn't chained to the Dow Jones. Its finite supply—21 million coins, not one more—sets it apart from traditional fiat currencies. You can print dollars like confetti. Not so with Bitcoin.

Now here's something I wish more folks understood: Bitcoin never sleeps. It doesn't close on Fridays at 4 PM like the stock market. There's no ringing bell to mark the end of trading. That means it's always subject to global sentiment—at any hour.

That's a blessing and a curse. On one hand, it offers unmatched flexibility and access. On the other, it's a sitting duck for knee-jerk reactions, headline shockwaves, and algorithmic trading that doesn't take weekends off. If you're in the Bitcoin market, you're in a race that never stops.

Let's not ignore the elephant in the room—Bitcoin's current market cap is $1.66 trillion. That's not chump change. And even after a 34% drop in trading volume over 24 hours, the price hovers around $83,000-$84,000. That tells me something important: despite the jitters, people aren't jumping ship.

Saylor's company, Strategy, didn't flinch. They just added another 22,048 Bitcoins to their pile, dropping a cool $1.93 billion at an average of $86,969 per coin. That's conviction, not speculation.

Now, here's the real kicker. Saylor believes that Bitcoin's price could hit $13 million within the next two decades. That's not just pie-in-the-sky dreaming—that's a forecast grounded in economics. With a capped supply and growing institutional buy-in, Bitcoin's scarcity will only amplify its value over time.

Remember, people once laughed at the idea of a $1,000 Bitcoin. Then it broke $10,000. Now it's dancing near $85,000. History doesn't always repeat itself, but it sure rhymes.

If you ask me, Bitcoin's short-term hiccups aren't a flaw—they're the tax you pay for long-term potential. You wouldn't throw out your Berkshire shares because of a quarterly dip, would you? The same logic applies here. Liquidity makes Bitcoin vulnerable in a sell-off, but its fundamentals haven't changed.

Michael Saylor's insight cuts through the noise. Bitcoin is not following the stock market out of loyalty—it's just always available when the panic button gets pressed. And in a world where supply is infinite but trust is scarce, Bitcoin's finite nature might just be its most valuable asset.