Bitcoin has yet to break through the psychological barrier of one hundred fifty thousand dollars, and MicroStrategy founder Michael Saylor attributes this to fundamental changes in the composition of Bitcoin holders. The well-known Bitcoin maximalist argues that the current market is undergoing a significant rotation-some investors are leaving, while an entirely new group is just beginning to establish their positions.
“I think we’re going through a rotation right now,” Saylor said on the Coin Stories podcast with Natalie Brunell.
The Lack of Long-Term Thinking Is Driving Bitcoin Sales
According to Saylor, many non-economically interested parties are rotating out of the asset, while a new cohort of investors is entering. He explained that, for various reasons, a significant amount of Bitcoin has ended up in the hands of governments, lawyers, and bankruptcy trustees. Many of these holders, Saylor noted, do not have a long-term investor mindset, and as Bitcoin’s price began to climb, they saw it as a good opportunity to exit and gain liquidity.
“So I think people less committed to the long term have taken the opportunity to exit the market, and a whole new class of investors are entering by way of ETFs and Bitcoin treasury companies,” he added.
After reaching its all-time high just before the US presidential inauguration, Bitcoin experienced a sharp decline, then signs of recovery began to emerge. Recent price action has pushed MicroStrategy’s Bitcoin holdings significantly above their average purchase price, reflecting renewed optimism among institutional investors.
Saylor Surprised by Shift in US Government Attitude
Spot Bitcoin ETFs have seen substantial inflows over the past week, indicating growing institutional interest. While Saylor is not surprised that the US government has yet to purchase Bitcoin for its Strategic Bitcoin Reserve-which was created by an executive order under President Trump-he did not expect the government’s stance to shift so positively so quickly after the inauguration.
“I was surprised that the US embraced Bitcoin as radically as it has over the last half year. I think I didn’t expect all the Cabinet members to be so enthusiastic,” Saylor said.
Institutional Rotation and the Future of Bitcoin
The ongoing rotation in the Bitcoin market is fundamentally reshaping its investor base. As short-term holders and those without a long-term vision exit, the influx of institutional investors through spot ETFs and corporate treasuries is building a more resilient and mature market. Saylor emphasizes that this transition is not just about price movement, but about Bitcoin’s evolution into a strategic asset for both individuals and organizations. With more institutions entering, Bitcoin is increasingly being viewed as a legitimate store of value and a hedge against macroeconomic uncertainty, rather than merely a speculative asset.
This shift is likely to reduce market volatility over time, as long-term holders are less prone to panic selling during downturns. The presence of large, committed investors also encourages further adoption and innovation within the crypto industry. As regulatory clarity improves and more companies allocate Bitcoin to their balance sheets, the foundation for sustained growth becomes stronger.
Saylor believes that as this new class of investors becomes the dominant force, Bitcoin’s path to higher price milestones will be driven by solid fundamentals and institutional demand, rather than short-term speculation. This transformation could set the stage for Bitcoin to eventually surpass previous highs and establish itself as a core component of global financial portfolios.
