Bitcoin Investment Risks and Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MSTR?
Source: NASDAQ.COM
- Market Volatility Analysis: Bitcoin has dropped 45% in the past six months, which may be shocking for new investors, reflecting a normal volatility chapter in the asset's history, necessitating careful risk assessment by investors.
- Annualized Volatility Data: Bitcoin's annualized volatility reached 42% in 2025, although lower than its earlier levels, it still exhibits four times the volatility of the stock market, indicating significant potential value loss during holding periods for investors.
- Scarcity and Future Expectations: Over 95% of the 21 million Bitcoins have been mined, with the next halving expected in April 2028; while this event is crucial for future pricing, its effects typically unfold over several quarters or even years.
- Human-Centric Risk Consideration: Bitcoin lacks a CEO or board, but decisions made by its core development team significantly influence the protocol's direction, particularly as Strategy holds approximately 3.6% of the total Bitcoin supply, highlighting the need for investors to be aware of human-centric risks.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 122.780
Low
229.00
Averages
453.17
High
705.00
Current: 122.780
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bitcoin Investment Risks and Market Volatility
- Market Volatility Analysis: Bitcoin has dropped 45% in the past six months, which may be shocking for new investors, reflecting a normal volatility chapter in the asset's history, necessitating careful risk assessment by investors.
- Annualized Volatility Data: Bitcoin's annualized volatility reached 42% in 2025, although lower than its earlier levels, it still exhibits four times the volatility of the stock market, indicating significant potential value loss during holding periods for investors.
- Scarcity and Future Expectations: Over 95% of the 21 million Bitcoins have been mined, with the next halving expected in April 2028; while this event is crucial for future pricing, its effects typically unfold over several quarters or even years.
- Human-Centric Risk Consideration: Bitcoin lacks a CEO or board, but decisions made by its core development team significantly influence the protocol's direction, particularly as Strategy holds approximately 3.6% of the total Bitcoin supply, highlighting the need for investors to be aware of human-centric risks.
See More
Analysis of Risks and Opportunities in Bitcoin Investment
- Volatility Characteristics: Bitcoin has dropped 45% in the past six months, with an annualized volatility of about 42%, indicating it is four times more volatile than the stock market, requiring investors to brace for potential value declines lasting up to a year, particularly after a 77% drawdown in 2022.
- Importance of Patience: The scarcity and potential of Bitcoin as a hedge against currency debasement necessitate a long-term holding period of at least five years to avoid forced selling during downturns, especially as institutional and sovereign adoption gradually unfolds.
- Developer Influence: Bitcoin lacks a CEO or board, yet its open-source protocol is maintained by about 41 core developers, giving a few individuals significant sway over its direction, notably with MicroStrategy's Michael Saylor holding approximately 3.6% of the total Bitcoin supply, directly impacting asset prices.
- Investment Risk Awareness: While Bitcoin is viewed as a potential wealth-building asset, its decentralized nature exposes investors to human-centric risks that many mistakenly believe are irrelevant to this cryptocurrency, highlighting the need for thorough understanding before investing.
See More
Michael Saylor Hits Back at Peter Schiff Over Bitcoin Performance
- Bitcoin Performance Debate: Peter Schiff highlighted Bitcoin's meager 12% gain over the past five years compared to gold's 163% and silver's 181%, reigniting a fierce debate between two prominent voices in the Bitcoin versus gold discourse, potentially undermining investor confidence in Bitcoin.
- Gold Price Surge: Currently, gold has surged above $4,700 per ounce, representing over a 160% increase from its April 2021 level of $1,780, supporting Schiff's argument and possibly prompting more investors to consider gold as a safe-haven asset amid market volatility.
- Saylor's Counterargument: Michael Saylor countered that since August 2020, Bitcoin has annualized at 36%, significantly outperforming gold's 16% and Nasdaq's 15%, indicating Bitcoin's superior long-term investment potential, which may attract more institutional investors.
- Company Holdings Overview: As of now, MicroStrategy holds 762,099 BTC, making it the largest corporate holder of the cryptocurrency, although its average purchase price of approximately $75,699 per coin puts it below break-even at current prices, which could impact its future financial performance.
See More
Strategy Inc Stock Outperforms Nasdaq Despite Bitcoin's Lackluster Performance
- Strong Stock Performance: Strategy Inc (MSTR) saw a 68.5% stock price increase over the past five years, significantly outperforming the Nasdaq, despite Bitcoin's mere 12% rise, indicating investor speculation and market sentiment driving MSTR's valuation.
- Substantial Bitcoin Holdings: Executive Chairman Michael Saylor disclosed that Strategy Inc holds 762,099 Bitcoins, valued at approximately $50.90 billion, showcasing the company's significant investment in the cryptocurrency market.
- Record Low Demand: On-chain data from CryptoQuant revealed that Bitcoin's apparent demand hit a record low of -86,000 Bitcoins at the start of April, suggesting insufficient structural accumulation to absorb new supply, which could hinder price recovery.
- Market Sentiment Analysis: While MSTR rose by 0.34% in after-hours trading, Bitcoin's retail sentiment remained in the 'bearish' zone, reflecting investor caution regarding the cryptocurrency's future performance and broader market outlook.
See More
Bitmine Holds $6.3 Billion in Staked ETH
- Staking Scale: Bitmine currently holds 3,142,643 ETH in staking, valued at $6.3 billion based on a price of $2,005 per ETH, demonstrating its significant influence in the Ethereum market.
- Launch of MAVAN: Bitmine launched MAVAN (Made in America Validator Network) on March 25, 2026, aimed at providing secure and reliable staking solutions for institutional investors, further solidifying its leadership in the Ethereum staking space.
- Investor Backing: Bitmine is supported by top institutional investors including Cathie Wood of ARK and Pantera, indicating strong market confidence in its long-term growth potential and aiding its goal of acquiring 5% of ETH.
- Trading Volume Performance: Bitmine's stock is actively traded in the U.S. market, with an average daily trading volume of $920 million, ranking it as the 100th most traded stock in the U.S., reflecting high investor interest in its business model.
See More
Bitmine Announces New Developments in ETH Staking
- ETH Staking Scale: Bitmine currently has 3,142,643 ETH staked, valued at $6.3 billion at $2,005 per ETH, demonstrating the company's significant influence and confidence in the Ethereum market.
- Launch of MAVAN Platform: On March 25, 2026, Bitmine launched the MAVAN (Made in America Validator Network) staking solution, aimed at providing high-quality staking infrastructure for institutional investors, further solidifying its leadership position in the Ethereum ecosystem.
- Strong Market Performance: Bitmine's stock has an average daily trading volume of $920 million in the U.S. market, ranking 100th, indicating high liquidity and investor interest in the cryptocurrency sector, enhancing the company's future capital operations.
- Strategic Investment Returns: Bitmine's ETH staking is projected to yield an annual return of 2.80%, generating $177 million in annual revenue, reflecting the company's successful strategy in crypto asset management and ongoing growth potential.
See More
Bitcoin Investment Risks and Market Volatility
- Market Volatility Analysis: Bitcoin has dropped 45% in the past six months, which may be shocking for new investors, reflecting a normal volatility chapter in the asset's history, necessitating careful risk assessment by investors.
- Annualized Volatility Data: Bitcoin's annualized volatility reached 42% in 2025, although lower than its earlier levels, it still exhibits four times the volatility of the stock market, indicating significant potential value loss during holding periods for investors.
- Scarcity and Future Expectations: Over 95% of the 21 million Bitcoins have been mined, with the next halving expected in April 2028; while this event is crucial for future pricing, its effects typically unfold over several quarters or even years.
- Human-Centric Risk Consideration: Bitcoin lacks a CEO or board, but decisions made by its core development team significantly influence the protocol's direction, particularly as Strategy holds approximately 3.6% of the total Bitcoin supply, highlighting the need for investors to be aware of human-centric risks.
See More
Analysis of Risks and Opportunities in Bitcoin Investment
- Volatility Characteristics: Bitcoin has dropped 45% in the past six months, with an annualized volatility of about 42%, indicating it is four times more volatile than the stock market, requiring investors to brace for potential value declines lasting up to a year, particularly after a 77% drawdown in 2022.
- Importance of Patience: The scarcity and potential of Bitcoin as a hedge against currency debasement necessitate a long-term holding period of at least five years to avoid forced selling during downturns, especially as institutional and sovereign adoption gradually unfolds.
- Developer Influence: Bitcoin lacks a CEO or board, yet its open-source protocol is maintained by about 41 core developers, giving a few individuals significant sway over its direction, notably with MicroStrategy's Michael Saylor holding approximately 3.6% of the total Bitcoin supply, directly impacting asset prices.
- Investment Risk Awareness: While Bitcoin is viewed as a potential wealth-building asset, its decentralized nature exposes investors to human-centric risks that many mistakenly believe are irrelevant to this cryptocurrency, highlighting the need for thorough understanding before investing.
See More
Michael Saylor Hits Back at Peter Schiff Over Bitcoin Performance
- Bitcoin Performance Debate: Peter Schiff highlighted Bitcoin's meager 12% gain over the past five years compared to gold's 163% and silver's 181%, reigniting a fierce debate between two prominent voices in the Bitcoin versus gold discourse, potentially undermining investor confidence in Bitcoin.
- Gold Price Surge: Currently, gold has surged above $4,700 per ounce, representing over a 160% increase from its April 2021 level of $1,780, supporting Schiff's argument and possibly prompting more investors to consider gold as a safe-haven asset amid market volatility.
- Saylor's Counterargument: Michael Saylor countered that since August 2020, Bitcoin has annualized at 36%, significantly outperforming gold's 16% and Nasdaq's 15%, indicating Bitcoin's superior long-term investment potential, which may attract more institutional investors.
- Company Holdings Overview: As of now, MicroStrategy holds 762,099 BTC, making it the largest corporate holder of the cryptocurrency, although its average purchase price of approximately $75,699 per coin puts it below break-even at current prices, which could impact its future financial performance.
See More
Strategy Inc Stock Outperforms Nasdaq Despite Bitcoin's Lackluster Performance
- Strong Stock Performance: Strategy Inc (MSTR) saw a 68.5% stock price increase over the past five years, significantly outperforming the Nasdaq, despite Bitcoin's mere 12% rise, indicating investor speculation and market sentiment driving MSTR's valuation.
- Substantial Bitcoin Holdings: Executive Chairman Michael Saylor disclosed that Strategy Inc holds 762,099 Bitcoins, valued at approximately $50.90 billion, showcasing the company's significant investment in the cryptocurrency market.
- Record Low Demand: On-chain data from CryptoQuant revealed that Bitcoin's apparent demand hit a record low of -86,000 Bitcoins at the start of April, suggesting insufficient structural accumulation to absorb new supply, which could hinder price recovery.
- Market Sentiment Analysis: While MSTR rose by 0.34% in after-hours trading, Bitcoin's retail sentiment remained in the 'bearish' zone, reflecting investor caution regarding the cryptocurrency's future performance and broader market outlook.
See More
Bitmine Holds $6.3 Billion in Staked ETH
- Staking Scale: Bitmine currently holds 3,142,643 ETH in staking, valued at $6.3 billion based on a price of $2,005 per ETH, demonstrating its significant influence in the Ethereum market.
- Launch of MAVAN: Bitmine launched MAVAN (Made in America Validator Network) on March 25, 2026, aimed at providing secure and reliable staking solutions for institutional investors, further solidifying its leadership in the Ethereum staking space.
- Investor Backing: Bitmine is supported by top institutional investors including Cathie Wood of ARK and Pantera, indicating strong market confidence in its long-term growth potential and aiding its goal of acquiring 5% of ETH.
- Trading Volume Performance: Bitmine's stock is actively traded in the U.S. market, with an average daily trading volume of $920 million, ranking it as the 100th most traded stock in the U.S., reflecting high investor interest in its business model.
See More
Bitmine Announces New Developments in ETH Staking
- ETH Staking Scale: Bitmine currently has 3,142,643 ETH staked, valued at $6.3 billion at $2,005 per ETH, demonstrating the company's significant influence and confidence in the Ethereum market.
- Launch of MAVAN Platform: On March 25, 2026, Bitmine launched the MAVAN (Made in America Validator Network) staking solution, aimed at providing high-quality staking infrastructure for institutional investors, further solidifying its leadership position in the Ethereum ecosystem.
- Strong Market Performance: Bitmine's stock has an average daily trading volume of $920 million in the U.S. market, ranking 100th, indicating high liquidity and investor interest in the cryptocurrency sector, enhancing the company's future capital operations.
- Strategic Investment Returns: Bitmine's ETH staking is projected to yield an annual return of 2.80%, generating $177 million in annual revenue, reflecting the company's successful strategy in crypto asset management and ongoing growth potential.
See More
