The founder of MicroStrategy, Michael Saylor, named two reasons for the current correction in the cryptocurrency market.
Michael Saylor
declared, which sees one of the problems in the non-transparent regulation of the crypto industry.
“I think there is a lot of dynamics here. If you look at the entire ecosystem, you have a range of regulatory uncertainties, especially regulatory uncertainty about stablecoins and tokens, and whether they are securities. This is causing some concern.”
According to the CEO of MicroStrategy, the second problem is the imperfection and immaturity of the crypto industry.
“You have a lot of leverage offshore. You have many cryptocurrency exchanges that can trade with up to 20x leverage. And these crypto exchanges have a lot of cross-collateralized tokens. Between them and decentralized finance (DeFi) exchanges, you can get leverage much higher than 20x.
Saylor believes that current market conditions provide “an excellent entry point for institutional investors interested in cryptocurrencies who have been on the sidelines so far.
“I feel that bitcoin is consolidating at this level. This is a great entry point for institutional investors. I have spoken to wealthy people, family offices, state company executives, private company owners and they have watched bitcoin rise in 2021. And there are a lot of people who would be afraid to own it if it was growing at 400% a year.
According to Saylor, a lot of institutional investors are now watching bitcoin and see that it is 40% below the all-time high, and it is consolidating. At the same time, they understand that he is supported by such serious investors as Bill Miller, regulators, senators and congressmen, institutional investors and public companies.
Plenty of investors are buying bitcoin on the downside. Earlier this month, Canadian mining company Bitfarms acquired 1,000 BTC worth $43.2 million as part of a revenue optimization strategy. President of El Salvador Nayib Bukele announced another purchase of bitcoins. Yesterday, the country’s government bought another 410 BTC, when the bitcoin rate fell to about $36,500. At the same time, MicroStrategy itself was forced to recently remove data on investments in cryptocurrencies from financial statements at the request of the SEC.
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