Michael Saylor analysis: The reason why Bitcoin has not broken the new high is that the market is entering the chip rotation period

Why has Bitcoin prices not continued to rise, even reaching $150,000? Regarding this issue, Michael Saylor, founder of micro-strategy, pointed out in an interview with Natalie Brunell that the core reason is that the market is undergoing a key "rotation".

He explained that this means that short-term holders who are "less investing" in Bitcoin are taking profits at a high level, while new funds led by institutions are steadily entering the market through diversified pipelines such as Bitcoin spot ETFs, which is reshaping the market structure.

Chip rotation: short-term holder exit and long-term institutional layout

Saylor further explained this "rotation" phenomenon and said that a considerable amount of Bitcoin currently stays in the hands of non-long-term investors such as governments, lawyers and bankruptcy trustees for specific reasons. Most of these holders do not have the "ten-year investor mentality" and therefore tend to see it as a "good exit point for obtaining liquidity" when the price of Bitcoin rises significantly.

However, at the same time, a brand new group of investors, such as institutions entering the market through Bitcoin spot ETFs and companies that include Bitcoin in corporate reserves, are actively absorbing these released Bitcoins.

Perhaps behind Bitcoin’s recent rise of $100,000 is the direct reflection of this chip rotation effect.

According to Farside data, in the past five trading days, Bitcoin spot ETFs have had a net inflow of US$920 million, with BlackRock's IBIT playing the main driving force.

This rotation clearly shows that the long-term layout of institutional investors is gradually replacing the short-term behavior of early giant whales, miners and retail traders, helping to reduce market volatility and support Bitcoin’s price.

Change in government positions and wave of Bitcoin institutionalization

It is worth noting that Michael Saylor expressed "surprising" at the positive change in Bitcoin's attitudes in just a few months since President Trump took office on January 20 this year. Related examples include signing an executive order to establish a strategic Bitcoin reserve for holding confiscated assets.

This change indirectly confirms the significant increase in Bitcoin acceptance at the government and institutions.

According to data from Saylor Tracker, before the deadline, MicroStrategist itself held 555,450 bitcoins, currently worth about US$57.78 billion. Its overall holding cost has achieved a floating profit of more than 50% compared to the average purchase price of US$68,569, which also provides a strong footnote to Saylor's optimistic position.

Looking ahead, although short-term volatility is inevitable, Bitcoin’s institutionalization trend is leading it into a new stage.

After confessing the wrong judgment yesterday, the founder of CryptoQuant also pointed out that it is time to abandon the traditional cyclical theory. The key to affecting Bitcoin's current trend is no longer the selling pressure of giant whale, but the new liquidity from institutions and ETFs.

Under such structural changes, Bitcoin’s long-term value and potential are worth investors’ rethinking and paying attention.

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