Bitcoin hit by trade policy, rising yields and AI spending, says Saylor

Michael Saylor, Executive Chairman of Strategy, has pointed to trade policy, climbing yields, and artificial intelligence (AI) outlays as reasons for Bitcoin's (BTC) recent weakness. Nonetheless, he maintains that the cryptocurrency is returning to a bull market.

Bitcoin is currently trading around $82,400, according to BeInCrypto data. The remarks were made during ParaFi Capital's Investor Day on October 17.

Why, in Saylor's View, Does Bitcoin Drop More Sharply Than Equities?

Risk-off shocks affect Bitcoin more severely than stocks owing to how Saylor categorizes the asset, he explained.

“Bitcoin is pure capital.”

— Michael Saylor, Executive Chairman of Strategy, at ParaFi Capital's Investor Day.

Saylor highlighted restrictive trade, foreign, and monetary policies over the last twelve months. He also referenced multiple trade war declarations targeting Canada and a rise in yield curves of 100 basis points, equivalent to one percentage point.

In his opinion, AI represents another headwind. The AI buildout is absorbing approximately $1 trillion from investors, according to Saylor. Separately, BlackRock CEO Larry Fink has cautioned that government deficits and technology demand are vying for scarce capital.

Is the Bullish Outlook Sustainable Amid a Stock Market Decline?

Saylor mentioned a rebound from a significant moving average roughly three months prior. Nonetheless, Bitcoin is still approximately 35% beneath its October 2025 all-time high of $126,080, according to the most recent BeInCrypto price data.

Others are less optimistic. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, anticipates further declines. On October 16, he predicted that Bitcoin might drop to around $10,000 if US equities fall by 20%.

Conversely, CryptoQuant founder Ki Young Ju contended that spot ETFs have soaked up $58 billion. He also stated that on-chain cost basis indicates a support level near $30,000.

Saylor's proposed solution is bank adoption. He also foresees Bitcoin custody by banks helping to construct credit networks over the coming 12 to 24 months. According to him, every $10 billion in credit corresponds to approximately one year of supply.

Strategy, which according to Saylor owns roughly 4% of all Bitcoin that will ever be mined, stands to gain from such demand. Hence, the key question is whether bank credit can surpass macroeconomic headwinds. The outcome could influence institutional attitudes toward Bitcoin.