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Comparing Bitcoin’s Downturn to Apple’s Past
Michael Saylor, Chair of Strategy MSTR, suggests that Bitcoin’s recent decline mirrors Apple’s stock drop from 2012 to 2013. During an episode of the “Coin Stories” podcast, he indicated that Bitcoin’s nearly 47% reduction from its peak of $126,000 is reminiscent of Apple’s struggles until 2020.
Insights from Saylor on Market Patterns
Saylor noted that Apple saw a staggering 45% drop in stock value between 2012 and 2013, even with broad acknowledgment of its successful product-market fit. He shared these insights with podcast host Natalie Brunell, emphasizing the cyclical nature of tech investments.
The Importance of Long-Term Perspective
He explained that, similar to Apple, Bitcoin’s current troubles are not indicative of its inherent worth or a product failure. These fluctuations are common among successful tech investments, citing Amazon as an example, which only gained significant market appreciation by 2020.
Enduring Volatility for Greater Returns
Saylor elaborated that every successful tech investment has experienced significant downturns. He asserted that the current Bitcoin drawdown of 137 days is just part of a typical resilience-building phase. Breakthroughs may take years—even several—to materialize.
Market Structure Changes Affecting Bitcoin
Addressing the reasons behind Bitcoin’s failure to reach expected highs before entering its recent bear market, Saylor pointed out shifts in market structure. He noted the migration of the derivatives market from offshore to regulated U.S. markets, which stabilizes Bitcoin’s volatility.
Disregarding External Threats
Additionally, Saylor dismissed concerns regarding the potential dangers posed by quantum computing to Bitcoin and associations with controversial figures like Jeffrey Epstein. He views Bitcoin as a neutral technology, usable by both beneficial and malicious actors alike.
Looking Ahead: Bitcoin as Global Capital
As one of the largest Bitcoin buyers, Saylor emphasizes that Bitcoin represents “global capital.” Despite holding over $7 billion in losses due to the recent decline, he remains optimistic about its future viability and growth.
