‘Headwinds rotating into tailwinds’ — Why Michael Saylor is positive about Bitcoin’s bull market

Bitcoin is holding onto part of its +40% gains in the summer, and Strategy founder Michael Saylor is confident the bull market run is still on. 

In an interview with Bloomberg, Saylor noted that prior bearish catalysts might now be turning into tailwinds. 

We’re at the beginning of the bull market. The headwinds were restrictive trade, foreign, and monetary policies. Now, we’re rotating to some tailwinds. We’ve got a favorable regulatory environment, banking adoption, tokenized securities, and digital credit networks are accelerating.

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Bitcoin’s price surged by 51% from July’s lows of $57.8K to over $87K. However, it has remained sideways between $80K and $87K in the first half of October. In the past four days, for instance, it has remained below $84K ahead of key macro events.  

When asked if the AI trade will starve Bitcoin of capital, Saylor claimed that it will do the opposite. According to him, when the AI trade is over, capital will rotate to scarce assets such as real estate, gold, and Bitcoin. 

Strategy holdings hit a record 848.25K BTC

After a recent $21M purchase, Strategy increased its holdings to 848,250 BTC (worth $70B), just above its previous all-time high of 847.36K BTC. 

While the buying spree may be back after the firm sold part of its holdings in the summer, the pace has been way lower compared to its expenditure on STRC buybacks. In fact, research firm Ecoinometrics best described it as a “slowdown.”

In the same week, it spent about $192M buying back its preferred shares, almost 9x what it spent on Bitcoin. A sign of regime change, but not much of a bid. If the biggest corporate buyer is slowing down, who picks up the slack?

So far, Bitcoin’s overall demand has gone from deep negatives in late September to neutral in mid-October. If the Spot U.S BTC ETF complex and Strategy bids more, the asset could defend $80K and attempt to eye $87K again. 

However, whether the demand flips positive and helps BTC depends on how the market will digest Wednesday’s inflation (CPI) data and reprice the late October Fed rate decision.

As it stands, Saylor plans to issue more preferred stocks or so-called digital credit (including STRC) during the bull run. He believes that BTC could hit six figures again above $100K. Whether the proceeds will be used for more BTC buys remains to be seen. 

Final Summary

• Michael Saylor claimed that the market is in an “early bull market” and could hit over $100K.
• Strategy’s stash hit a record high of 848.25K BTC, but the buying spree may be slowing down.