Bitcoin bull Michael Saylor cites remarks from journalist Natalie Brunnel in justification of Bitcoin’s volatility amid crash to $56,000.
The turbulence observed across global stock markets dealt a blow on Bitcoin and the rest of the crypto market. Notably, on Aug. 5, BTC recorded its most bearish drop this year amid a crash in Japanese and U.S. stocks. The premier crypto asset collapsed to a 6-month low below $50,000 before rebounding.
Bitcoin Collapses Amid Stock Crash
Despite Bitcoin’s recovery push, it has faced fierce resistance at the $56,000 level. The market collapse has again put to question the firstborn crypto’s capabilities as a sufficient hedge against inflation. FOX Business anchor Neil Cavuto called attention to this in an interview with acclaimed journalist and Bitcoin proponent Natalie Brunnel.
#Bitcoin is Digital Capital, and its volatility is a feature, not a bug. – @NatBrunellpic.twitter.com/YWSdCuCca2
— Michael Saylor⚡️ (@saylor) August 6, 2024
Responding to Cavuto’s inquiries, Brunnel suggested that every day is a “great day” to buy Bitcoin despite market conditions. She referenced a quote from Napoleon, stressing that one of the traits of a genius is to carry out an average activity when everyone else around him is going crazy.
Brunnel called for investors to employ a dollar-cost average technique for Bitcoin purchases. According to him, this pattern should persist regardless of the prevailing noise. “Ignore the noise,” she charged.
The Coin Stories podcast host recalled that Bitcoin traded for around $25,000 in August 2023. A year later, it has more than doubled in price despite recently facing a correction. She stressed that when zoomed out, the market is up despite occasional retracements, which are ample buying opportunities.
Bitcoin’s Reliability as Inflation Hedge
However, Cavuto expressed apprehensions around Bitcoin’s reliability as an inflation hedge. He pointed to Gold, the traditional hedge against inflation, which maintained a stable value during the global market crash on Aug. 5. Notably, Gold only dropped 1.33% on Monday, as opposed to Bitcoin’s 7.10% crash.
Despite this, Brunnel contended that Bitcoin offers an improvement to some of Gold’s properties. She attributed Bitcoin’s steeper drop compared to Gold to its round-the-clock availability for trade, making it a target for selloffs when investors need to exit their positions.
Brunnel remarked: “You can trade it (Bitcoin) at the speed of light globally, 24/7 without permission from any intermediaries.”
She emphasized that the market limitations are a disappointment for the global financial scene, especially in the 21st century. Brunnel referenced MicroStrategy Chairman Michael Saylor on the constraints of capital movement due to the schedules and limitations from the traditional system.
“Everything is slow and expensive, and you have to get permission from your bank, which has to get permission from the central bank…” she added.
According to Brunnel, people should understand that Bitcoin is “digital capital.” She stressed that the asset’s volatility during periods of panic is in fact a feature and not a bug. Brunnel argued that this volatility just shows how reliable and liquid Bitcoin is.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
