Saylor: Bitcoin Volatility Declines Amid Institutional Adop…

Michael Saylor contends that the entry of institutional investors has not increased Bitcoin’s volatility, but rather contributed to a narrowing of price swings as the asset’s base and market structure deepen. Speaking on Fox Business this week, the MicroStrategy executive chairman noted that Bitcoin’s annualized volatility has decreased from approximately 80% in 2020 to roughly 50% currently, with expectations for further declines.

Independent research supports this observation. Fidelity has highlighted periods where Bitcoin’s risk profile resembles portions of the S&P 500, while iShares charts a consistent downward trend in realized volatility. While still more volatile than broad equities or gold, Bitcoin’s volatility is demonstrably lower than in previous years.

Bitcoin’s price has recently declined, with the asset giving back some of its 2025 gains due to risk-off sentiment and ETF outflows. Despite this recent pullback, the long-term trend of volatility compression remains. Thinner liquidity has been identified as a factor amplifying short-term price swings.

MicroStrategy holds approximately 649,870 BTC, after recent acquisitions, solidifying its position as the largest corporate holder. The company’s website tracks its mNAV multiple, which reflects the stock’s premium or discount relative to its bitcoin per-share value, and has also been compressed alongside the market.

MSTR, MicroStrategy’s stock, often exhibits amplified price movements compared to Bitcoin. Despite the recent sell-off, Microstrategy stock closed 5.8% up on Nov. 18.

Macro adoption via spot ETFs, the growth of derivatives markets, and a larger base of long-only holders are contributing to this decline in volatility. Research emphasizes a pattern of decreasing secular volatility punctuated by cyclical spikes.

Saylor’s assertion is not that Bitcoin is now “low risk,” but that its volatility is trending downwards as the asset matures. This suggests that institutional investment is a stabilizing force, not a destabilizing one.

Coinspeaker aims to provide unbiased reporting and this article should not be considered financial or investment advice. Market conditions can change rapidly, so readers are encouraged to verify information and consult with a professional before making any decisions based on this content.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.