MicroStrategy CEO Michael Saylor says there’s a whole list of aspects and practices that are hurting Bitcoin. Referring to these as a “parade of horribles”
Since November 2021, when Bitcoin reached an all-time high at $69k, Bitcoin has fallen more than 70%. Over the past seven days, the cryptocurrency’s value has dropped more than 30%, with BTC currently near $20,000 per coin. Over the weekend, it traded as low as $17600
My discussion yesterday with @NorthmanTraderAnalyzing economic developments over the past two-years, and investment strategy during the macro storm #bitcoinVolatility drivers, milestones to mainstream adoption, and the current regulatory outlook for crypto.https://t.co/bEx1iM9Dmz
— Michael Saylor⚡️ (@saylor) June 18, 2022
Saylor’s “parade of horribles”
Saylor, one of Bitcoin’s most high-profile bulls, things contributing to the high volatility in BTC price and thus unattractiveness to most institutional investors include widespread wash trading and too many unregistered exchanges with questionable practices.
“The crypto exchanges, offshore and onshore, are unregistered, unregulated and offer 20x leverage,” he said, adding that these exchanges do not have “mature Chinese walls” and thus they launch tokens, leak listing information and enable all sorts of practices that affect the market.
Then there is that blot of 19,000 unregistered securities whose trading is “cross collateralized with Bitcoin.
“What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure, and they are all cross-collateralized with Bitcoin,”
What about “wildcard” crypto banks that are now collapsing? He claims that crypto funds are placing billions of customer deposits on suspicious projects. This is causing problems for the Bitcoin market. According to him, that’s what happened with some of the crypto projects currently facing liquidity problems and potential collapse.
Saylor gives a warning to the general public.
“The general public shouldn’t be buying unregistered securities from wildcat bankers that may or may not be there next Thursday.”