Michael Saylor from Strategy Explains Reasons for Bitcoin's Decline

Executive Chairman of Strategy Michael Saylor explained Bitcoin's weakness by trade policy, rising yields, and investments in artificial intelligence. He still believes that the asset is returning to a bull market. The statement was made at Investor Day of the investment company ParaFi Capital.

Saylor claims that the flight of investors from risky assets hits Bitcoin much harder than the stock market due to the unique properties of the cryptocurrency itself. "Bitcoin is pure capital," he said.

He pointed to the tightening of trade, foreign, and monetary policy over the year: multiple trade wars against Canada and a rise in yields by 100 basis points, or 1 percentage point. The second pressure factor is artificial intelligence: Saylor estimates AI investments at about $1 trillion, which diverts significant amounts of investor money. Previously, BlackRock CEO Larry Fink warned that the government deficit and demand for technology compete for limited capital.

Saylor recalled the recent rebound of Bitcoin from the key moving average about three months ago. Meanwhile, BTC is currently trading 35% below the October 2025 peak of $126,080.

Earlier, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, stated on October 16 that if the US stock market falls by 20%, Bitcoin could drop to $10,000. On the contrary, CryptoQuant founder Ki Young Ju notes that spot ETFs have accumulated $58 billion, and the on-chain value fits into support around $30,000.

Saylor is betting on banks: he predicts that bank custody of Bitcoin will create credit networks within 12–24 months. According to him, every $10 billion in loans corresponds to approximately a year's supply volume. Strategy controls about 4% of all Bitcoins ever issued. It is important for the market whether bank credit can outpace macroeconomic pressure – this will determine how institutional investors will work with Bitcoin.