Saylor stated that the high liquidity of Bitcoin makes it a short term risky asset.

Michael Saylor, co-founder of Strategy, stated in a recent announcement on X that the recent price volatility of Bitcoin is largely due to its deep liquidity and 24/7 accessibility, rather than any real correlation with other risky assets.

Saylor made this comment in response to a question from Dave Portnoy, the founder of Barstool Sports, who asked why Bitcoin, designed to be independent of the USD and unregulated, “essentially trades exactly like the US stock market.”

Portnoy notes that when the stock market rises, Bitcoin rises, and when this market falls, Bitcoin also falls.

“Bitcoin trades like a risk asset in the short term because it is the most liquid asset, easy to sell, 24/7. In times of panic, traders tend to sell what they can sell, not what they want. That does not mean it has a correlation in the long term,” Saylor commented.

In a private statement, Saylor noted that the usefulness of Bitcoin makes it the most volatile asset.

Bitcoin reached $87,800 on April 3 before plummeting to $81,500 following Trump’s tax announcement. Currently, BTC has recovered to around $84,600, but is still down nearly 1% over the past 7 days.

Source: TradingViewDespite the market volatility, Strategy’s reserve of 528,185 Bitcoin has generated over $8 billion in unrealized profits. This figure once doubled when BTC hit a record high of $108,000.

Under Saylor’s leadership, the company is unlikely to sell any of the Bitcoin it holds. The company’s 3-year goal is to raise $42 billion to continuously fund additional purchase transactions and ultimately become a Bitcoin bank.

Source: StrategySaylor’s Bitcoin strategy has inspired others, including GameStop.

First, there were rumors circulating that GameStop was considering investing in Bitcoin ahead of the fourth-quarter earnings report. Then, at the end of last month, the company’s board of directors unanimously approved an update to its investment policy, allowing the company to hold Bitcoin as a reserve asset in its treasury.

Earlier this week, the retailer and memecoin icon revealed raising $1.5 billion in a convertible bond offering. A portion of the funds will be allocated to Bitcoin.

On Thursday, Saylor encouraged GameStop CEO Ryan Cohen to buy Bitcoin, stating that it is “at a bargain price.”

Cohen just bought 500,000 shares of GameStop at $21.55 per share, increasing his ownership stake to about 8.4%.

You can check the BTC price here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

• SEC meets with BlackRock and Crypto Council to discuss regulations on cryptocurrency ETFs.
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• The cryptocurrency market follows the S&P 500 and Nasdaq as concerns about a recession loom.

Viet Cuong

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