BEARISH 📉 : Shadow banking limits Bitcoin price potential, warns Michael Saylor

Michael Saylor attributes Bitcoin's price constraints not to its long-term prospects but to a bottleneck in the credit market. A significant portion of Bitcoin wealth cannot be financed within traditional banking, pushing it towards "shadow" markets where rehypothecation increases selling pressure.

Saylor highlights that while derivatives are moving onshore in regulated US markets, banks are slow to accept Bitcoin as collateral, impacting liquidity access for investors.
He notes that approximately $1.8 trillion of Bitcoin is held by retail and offshore investors who lack traditional banking access.
The inability to use Bitcoin as loan collateral forces holders into shadow banking systems, limiting upside potential.
Borrowing from crypto lenders is expensive, with rates significantly higher than traditional spreads.
Banks offering credit against Bitcoin ETFs are emerging but remain costly and limited compared to conventional lending.
Saylor criticizes rehypothecation, where collateral is reused multiple times, creating excessive selling pressure.
He advocates for a regulated, non-rehypothecating credit system for Bitcoin to stabilize prices.
Saylor concludes that until traditional banks fully integrate Bitcoin financing, its market will be influenced by shadow-credit systems.

At the time of reporting, Bitcoin was priced at $72,236.