Michael Saylor: Bitcoin volatility has dropped to around 50%, and its long-term performance may outperform the S&P 500 by 1.5 times.
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Michael Saylor notes Bitcoin's volatility has fallen to about 50% and may drop further, potentially outperforming the S&P 500 by 1.5 times in the long term. He remains unconcerned about price drops, as his company can handle major drawdowns.
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Odaily Odaily that Michael Saylor stated in an interview on Tuesday, "I think Bitcoin volatility has decreased significantly." He added that when he started buying Bitcoin for Strategy in 2020, its annualized volatility was around 80%. Since then, Bitcoin volatility has been trending downwards and is currently around 50%.
He stated that Bitcoin's volatility could decrease by approximately 5 percentage points every few years, and as the asset matures, Bitcoin's volatility will approach 1.5 times that of the S&P 500, while "its performance will also be 1.5 times better than the S&P 500." Furthermore, Michael Saylor expressed no concern about a significant drop in Bitcoin's price, stating that the company's design can withstand 80% to 90% drawdowns and still function normally. (Cointelegraph)