MicroStrategy CEO Michael Saylor, who's transformed his business intelligence company into a Bitcoin acquisition vehicle, expects the king cryptocurrency to eventually hit $6 million per BTC and in a new interview reveals the factors that he believes are contributing to the wild price swings in the crypto markets.
“The volatility is driven by the immaturity of the asset class. The lack of wash trading rules – you can buy and sell [crypto assets] within the same hour…I think that’s fairly immature.
I think 20x leverage on the off-shore exchanges, I think the Wild West of crypto derivatives, the cross-collateralization of altcoins into ETH [or] BTC through decentralized finance (DeFi) exchanges on a Saturday night through a very thin piece of liquidity on the 177th-biggest coin – all of those things are a recipe for volatility.”
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