- Bitcoin’s volatility is driven by liquidity and 24/7 market accessibility.
- Short-term Bitcoin price movements mimic risk assets, but long-term correlation is weak.
- GameStop is exploring Bitcoin as a treasury reserve, inspired by Saylor’s strategy.
Bitcoin has recently experienced significant price fluctuations, drawing attention to its volatility. This volatility is often attributed to the cryptocurrency’s liquidity and its round-the-clock accessibility. Unlike traditional assets, Bitcoin operates 24/7, which allows traders to react quickly to market conditions. As a result, Bitcoin is frequently traded like a risk asset, though its value is not necessarily tied to traditional markets in the long term.
Michael Saylor, co-founder of Strategy, explained that Bitcoin’s usefulness and liquidity make it the most volatile asset. He emphasized that Bitcoin is the most salable, liquid asset available, and during times of panic, traders sell assets they can access quickly, which often includes Bitcoin.
Bitcoin is most volatile because it is most useful. https://t.co/XzCNHrdsh0
— Michael Saylor⚡️ (@saylor) April 4, 2025
Bitcoin’s Behavior: Independent of Traditional Markets
Saylor responded to an inquiry from Barstool Sports founder Dave Portnoy, who questioned why Bitcoin trades similarly to the US stock market, especially when the market experiences fluctuations. Portnoy observed that Bitcoin’s price movements often align with stock market trends, rising when markets are bullish and falling when markets decline.
Saylor clarified that Bitcoin’s short-term price movements resemble those of risk assets because it is the most accessible and liquid asset. However, he emphasized that this correlation is only temporary and does not indicate a long-term relationship between Bitcoin and traditional markets.
GameStop’s Interest in Bitcoin
Saylor’s comments on Bitcoin have gained traction, inspiring other companies to consider Bitcoin as part of their investment strategies. GameStop, a well-known retail company, has recently made headlines for its consideration of Bitcoin as a treasury reserve asset. The company’s board approved a policy update allowing Bitcoin to be held as part of its reserves.
This decision came after rumors surfaced about GameStop potentially investing in Bitcoin before its Q4 earnings announcement. GameStop has also raised $1.5 billion in a convertible notes offering, with a portion of the funds allocated to Bitcoin. Saylor has actively encouraged GameStop’s CEO, Ryan Cohen, to purchase Bitcoin, suggesting that the asset is currently “on sale.”
Bitcoin’s Market Metrics
As of press time, Bitcoin’s price stands at $83,615.23, with a 24-hour trading volume of $34.46 billion. Over the past 24 hours, the price has declined by just 0.03%, while it has dropped 1.85% over the past week. With a circulating supply of 20 million BTC, Bitcoin’s market capitalization is valued at approximately $1.66 trillion.
