MicroStrategy Prepares for 90% BTC Drawdown as Volatility Drops
MicroStrategy has reiterated its readiness to withstand an 80–90% Bitcoin drawdown as Bitcoin volatility falls from near 80% in 2020 to about 50% today. Executive Chairman Michael Saylor forecasts continued declines in volatility, which he says signal a maturing market and improve long-term investment stability. The company holds 649,870 BTC at an average cost of $74,443, giving it a net asset value multiple of 1.11x after recent price corrections from 1.52x at October’s peak.
Between November 10 and 16, MicroStrategy acquired 8,178 BTC for $835 million, refuting any sales rumors. Rising institutional investment—from Canada’s CPP pension fund to Florida’s pension board—underscores growing confidence in Bitcoin’s long-term store of value. Saylor predicts Bitcoin volatility will eventually stabilise at 1.5 times that of the S&P 500 while continuing to outperform traditional benchmarks.
Bullish
The combined news highlights falling Bitcoin volatility and increased institutional buying, key bullish signals for traders. In the short term, lower volatility can reduce trading risks and attract more entry interest, while MicroStrategy’s $835 million BTC buy and ability to endure a 90% drawdown reinforce confidence in strong hands resisting sell-offs. Over the long term, forecasts of stabilised volatility at 1.5x the S&P 500 and continued outperformance against traditional benchmarks support a sustained upward trend in BTC price.