Strategy Founder Blames Short-Term Sellers, Sees Institutional Rotation Underway

Michael Saylor, founder of Strategy and a prominent advocate for Bitcoin, believes the flagship cryptocurrency has yet to breach $150,000 because investors without a long-term vision have exited the market during its recent rally — while new institutional capital is beginning to flow in.

“I think we’re going through a rotation right now,” Saylor told Natalie Brunell on the Coin Stories podcast on May 9.

Why Every Company Should Adopt the Bitcoin Standard pic.twitter.com/t8ouMULWbb

— Michael Saylor (@saylor) May 8, 2025

Short-Term Holders Cashed Out Amid Rally

Saylor attributed Bitcoin’s stalled ascent to a sell-off by “non-economically interested parties,” such as governments, lawyers, and bankruptcy trustees, many of whom don’t have a 10-year investor mindset.

“As Bitcoin rallied, they saw an exit opportunity to regain liquidity,” Saylor said.

These parties, he explained, held Bitcoin for legal or administrative reasons, not as a long-term investment. As a result, they cashed out when prices surged — temporarily weighing down Bitcoin’s price momentum.

In contrast, Saylor pointed to a new wave of long-term investors now entering the market, particularly through:

• Spot Bitcoin ETFs

• Corporate treasury allocations via firms like Strategy and Strive

Market Volatility Reflects Investor Shift

Bitcoin reached an all-time high of $109,000 on January 20, just hours before U.S. President Donald Trump’s inauguration, before retracing to $76,273 by April 9. However, it has since rebounded past $100,000, fueled by renewed institutional demand and macroeconomic catalysts, including Trump’s proposed tariff policies.

As of May 9, Bitcoin is trading above $103,000, and Strategy’s massive holdings of 555,450 BTC — acquired at an average price of $68,569 — are now up more than 50%, worth approximately $57.23 billion, according to Saylor Tracker data.

Government Bitcoin Adoption Surprised Saylor

Saylor said he was not surprised that the U.S. government has yet to directly purchase Bitcoin for its Strategic Bitcoin Reserve, established under a Trump executive order on March 7. The current reserve consists of Bitcoin seized from criminal and civil forfeiture cases.

However, he did admit to being caught off guard by how quickly and positively the U.S. government embraced Bitcoin following Trump’s return to office.

“I was surprised that the U.S. embraced Bitcoin as radically as it has over the last six months,” Saylor said.
“I didn’t expect all the Cabinet members to be so enthusiastic.”

ETF Inflows Reflect Growing Institutional Appetite

According to Farside data, spot Bitcoin ETFs recorded $564.7 million in inflows over the past five trading days, underscoring the growing institutional appetite for Bitcoin exposure through regulated channels.

---

Final Thoughts: Long-Term Vision Separates Diamond Hands from Tourists

Saylor’s latest comments reinforce a key theme in the crypto market — conviction matters. As short-term holders exit and institutions quietly accumulate, Bitcoin’s next major leg up may depend on patient capital and strategic positioning.

If the “rotation” Saylor describes continues to accelerate, the road to $150,000 BTC may not be far off. The question now is who’s still holding when it gets there — and who already sold the top.