BTC Price Fluctuations Are Driven by Deep Liquidity, Not Correlation with Other Risk Assets

Bitcoin's recent price fluctuations are largely driven by its deep liquidity and round-the-clock accessibility, rather than a genuine correlation with other risk assets

Michael Saylor, Strategy’s Strategy co-founder, has said that Bitcoin’s recent price fluctuations are largely driven by its deep liquidity and round-the-clock accessibility, rather than a genuine correlation with other risk assets.

Saylor made the comment in response to a question from Barstool Sports founder Dave Portnoy, who asked why Bitcoin, designed to be independent of the US dollar and free from regulation, “basically trades exactly like the US stock market.”

Portnoy noted that when the market rises, Bitcoin rises, and when it falls, Bitcoin follows.

“Bitcoin trades like a risk asset short term because it’s the most liquid, salable, 24/7 asset on Earth. In times of panic, traders sell what they can, not what they want to. Doesn’t mean it’s correlated long-term—just means it’s always available,” according to Saylor.

In a separate statement, Saylor said that Bitcoin’s usefulness makes it the most volatile.

Bitcoin reached $87,800 on April 3 before falling to $81,500 following Trump’s tariff announcement. Currently, BTC trades at around $82,700, down approximately 5% in the past 24 hours, per TradingView.

Despite market volatility, Strategy’s 528,185 Bitcoin stash still generates over $8 billion in unrealized profits, according to the company’s portfolio tracker. The figure once doubled.

The firm, helmed by Saylor, will unlikely offload any units of its Bitcoin holdings. Its three-year target is to raise $42 billion to continuously finance additional purchases, and eventually become a Bitcoin bank.

Saylor’s Bitcoin playbook has inspired others, including GameStop.

First, rumors circulated about GameStop considering an investment in Bitcoin ahead of its Q4 earnings announcement, then late last month, the company’s board of directors unanimously approved an update to its investment policy, allowing the company to hold Bitcoin as a treasury reserve asset.