Michael Saylor Says Bitcoin Price Could Drop Up to 80%: Theoretical or Real Risk?

Michael Saylor, chairman of MicroStrategy and a longtime Bitcoin supporter, acknowledged the theoretical possibility that Bitcoin could fall 80% in value by the end of the current cycle, although he said this was unlikely. MicroStrategy currently holds nearly 2% of the total Bitcoin supply.

Bitcoin Could Crash by 80%
Michael Saylor believes that Bitcoin could experience a sharp price drop similar to previous cycles, such as when it fell from $66,000 to $16,000 in 2022 due to the collapse of poorly managed companies like FTX and Celsius .

However, he believes that the current market lacks vulnerabilities, making this scenario unlikely, although Bitcoin 's four-year cycle remains to be seen.

MicroStrategy's Strategy for Bitcoin
Michael Saylor said MicroStrategy has adopted a strategy of continuously buying Bitcoin regardless of price, raising capital through debt and issuing shares to buy 402,100 BTC at an average price of $58,219.

This amount of Bitcoin has returned 63.3% to shareholders, with a total return of about $12.3 billion by December 2024, reinforcing Saylor's belief that MicroStrategy is “the most profitable and fastest-growing company on the Bitcoin Standard.”

Risks Related to MicroStrategy's Strategy
While MicroStrategy's Bitcoin strategy has been profitable, the company now has about $4.57 billion in debt, creating risk if Bitcoin falls sharply as it has in previous cycles.

However, Saylor still believes in Bitcoin's long-term potential and continues to buy Bitcoin to hold, demonstrating his commitment to the cryptocurrency.