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Bitcoin (BTC) bull and MicroStrategy CEO Michael Saylor is analyzing the factors that he believes are driving the crypto market downturn at the start of a new year.<\/p>\n
In a new Bloomberg interview, Saylor unveils<\/a> two factors that he says are contributing to the volatility experienced by the crypto markets so far this year.<\/p>\n \u201cI think that there\u2019s a lot of dynamics here. If you look at the entire crypto ecosystem, you have a set of regulatory uncertainty, especially regulatory uncertainty around stablecoins and crypto tokens and whether or not they\u2019re securities. And that creates a little bit of anxiety.<\/em><\/p>\n You have a lot of leverage offshore. You have a lot of crypto exchanges that can trade with up to 20x leverage. And those crypto exchanges have many, many tokens that are cross-collateralized. Between them and the decentralized finance [DeFi] exchanges, you can get much higher than 20x leverage. So that\u2019s the second source of volatility.\u201d<\/em><\/p>\n According to Saylor, Bitcoin is currently offering a \u201cgreat entry point\u201d for institutions especially as legendary investors such as Bill Miller allocate<\/a> a huge portion of his portfolio to the flagship cryptocurrency.<\/p>\n \u201cI feel like it\u2019s consolidating at this level. This is a great entry point for institutional investors. I talk to high net-worth individuals, family offices, public company executives, private company owners and they watched Bitcoin run up in 2021. And there are a lot of people that would be afraid to own it if it was going up 400% a year. <\/em><\/p>\n But if they\u2019re staring at it and it\u2019s 40% off the all-time high and it\u2019s consolidating. And they see that it\u2019s being embraced by people like Bill Miller, by very well-respected investors. It\u2019s being embraced by the regulators, it\u2019s being embraced by senators and congressmen and public investors and public companies. They are looking at this as like a good entry point.\u201d<\/em><\/p>\n