Major Claim from a Famous Founder: “Bitcoin Is on Sale Right Now”

Lawrence Lepard, founder and portfolio manager at Equity Management Associates, assessed the recent declines in the cryptocurrency market, the MicroStrategy controversy, and global monetary policies.

Lepard attributed Bitcoin’s drop to the $58,000 level to an exaggeration of market fears (FUD), recalling past lows of $4,000 and $15,000. The renowned investor stated that investors’ anxiety during price drops is a flawed psychology, adding:

“Investing is the only area where people don’t like falling prices. You’re happy when steak goes on sale at the supermarket, but when investment prices drop, you ask yourself, ‘What went wrong?’ According to the Power Law model, the average value of Bitcoin should be around $134,000 today. Therefore, buying Bitcoin at $58,000 is actually taking advantage of a significant discount.”

Addressing the recent increase in criticism directed at MicroStrategy and its founder Michael Saylor, Lepard dismissed speculation that the company would go bankrupt or face liquidation risks. He stated that the company offers a leveraged position on Bitcoin and that its debt repayments are spread over several years. He suggested that if Bitcoin triples in value to reach $180,000-$200,000 within the next two years, MicroStrategy shares (MSTR) could increase in value by four to six times.

Lepard argued that the general selling pressure in the markets stemmed from the perception that the “devaluation of fiat currency” theme had ended due to the Fed’s interest rate hikes and tightening policies, but stated that this was an illusion. He noted that the enormous debt-to-GDP ratio in the US and global economies could not be sustained otherwise, and that central banks would sooner or later have to pump liquidity into the system.

*This is not investment advice.