MicroStrategy CEO Michael Saylor says there’s a whole list of aspects and practices that are hurting Bitcoin. Referring to these as a “parade of horribles”
Bitcoin has plummeted more than 70% since hitting an all-time high of $69k in November 2021. Over the past seven days, the cryptocurrency’s value has dropped more than 30%, with BTC currently near $20,000 per coin. It traded at lows of $17,600 over the weekend.
Saylor says Bitcoin would experience less volatility were it not for a number of negative factors within the crypto market. He made his remarks during a discussion with Northman Trader’s Sven Henrich.
My discussion yesterday with @NorthmanTrader reviewing economic developments during the past two years, investment strategy during the macro storm, #bitcoin volatility drivers, milestones for mainstream adoption, and the current crypto regulatory outlook.https://t.co/bEx1iM9Dmz
— Michael Saylor⚡️ (@saylor) June 18, 2022
Saylor’s “parade of horribles”
Saylor, one of Bitcoin’s most high-profile bulls, things contributing to the high volatility in BTC price and thus unattractiveness to most institutional investors include widespread wash trading and too many unregistered exchanges with questionable practices.
“The crypto exchanges, offshore and onshore, are unregistered, unregulated and offer 20x leverage,” he said, adding that these exchanges do not have “mature Chinese walls” and thus they launch tokens, leak listing information and enable all sorts of practices that affect the market.
Then there is that blot of 19,000 unregistered securities whose trading is “cross collateralized with Bitcoin.
“What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure, and they are all cross-collateralized with Bitcoin,”
What about “wildcard” crypto banks that are now collapsing? He says crypto funds are betting billions of customer deposits on suspect projects, with the resultant problems hitting the Bitcoin market. According to him, that’s what happened with some of the crypto projects currently facing liquidity problems and potential collapse.
To the public, Saylor offers a caution:
“The general public shouldn’t be buying unregistered securities from wildcat bankers that may or may not be there next Thursday.”