Speaking at a recent Mizuho event, Saylor reiterated his long-held view that market bottoms are defined not so much by valuations as by seller attrition, writes coindesk.com.
Trend reversals, he added, are driven more by capital structure and liquidity than investor sentiment.
Saylor notes limited selling pressure amid rising demand driven by inflows from ETFs that are absorbing daily supply, as well as companies moving Treasury holdings into bitcoin.
The following bitcoin and Strategy drivers are.
As for the catalyst for the next bull market, Saylor believes it will be the formation of bank credit and digital credit on top of bitcoin. This will provide support for the first cryptocurrency to expand lending and borrowing beyond a simple buy-and-hold strategy.
The digital loan already exists, Saylor said, in the form of Strategy STRC preferred shares with an impressive 11.5% yield, which is still well below the company’s expectations for long-term BTC value growth. Strategy is “transforming” bitcoin “from an underperforming asset to a capital markets engine,” he said.
On the recently hotly debated topic of quantum computing, Saylor said the risks are exaggerated. In his opinion, the threat is theoretical in nature, is probably several decades away, and even then will be solvable.
