What happened?
Michael Saylor, the CEO of Strategy, suggested in a recent interview that as Bitcoin continues to draw attention from institutional investors, it could become a “boring” store of value due to their demand for lower volatility. He explained that the early stages of any asset are often marked by volatility, which decreases as more institutions join the market. This prediction comes as Bitcoin has consolidated around $115,500 after reaching an all-time high of $124,100 in August.
Who does this affect?
The potential transformation of Bitcoin affects a broad range of people and entities. Institutional investors who are looking to get into the crypto market could be affected if they expect higher returns that come with high volatility. Current Bitcoin holders may also be affected as the decrease in volatility could lead to slower price appreciation. Companies like Strategy that are heavily invested in Bitcoin may also need to adjust their strategies.
Why does this matter?
This shift matters because it indicates a possible new phase in the evolution of Bitcoin as a mainstream asset. If large institutions demand stability before entering the market, then long-term price stability might become a new norm for Bitcoin. This would significantly impact its market behavior and could potentially change how investors approach Bitcoin, shifting the perception from a quick profit-making opportunity to a long-term store of value.