Strategy CEO Phong Le stated that Bitcoin's fundamental market metrics remain strong in 2025 despite price declines and worsening sentiment at the end of the year. He noted that short-term volatility does not negate the long-term strength of the market's underlying factors, and investors should consider Bitcoin from a long-term perspective. However, Le also emphasized that short-term price movements are often unpredictable and require a methodical approach.
Bitcoin's Fundamental Metrics Remain Strong
According to Phong Le, Bitcoin's fundamentals in 2025 "could not be better," reflecting his view on demand and institutional interest. Meanwhile, the asset experienced a notable decline: Bitcoin reached an all-time high of $125,100 on October 5 and has since dropped nearly 30%, trading at $87,687 at the time of publication according to CoinMarketCap. The Crypto Fear & Greed Index has shown "Extreme Fear" since December 12, indicating heightened pessimism among market participants.
Bitcoin's Long-Term Outlook
Le focuses on the asset's long-term perspective and institutional trust in Bitcoin, noting that the US government now "fully supports Bitcoin like never before." He links this view to growing attention from banks and government agencies trying to "catch up." For additional context on market estimates and expectations, see 2025 forecasts, which discuss opinions and indicators affecting long-term valuations.
Current State of Strategy (MSTR)
Strategy is feeling the impact of Bitcoin's price drop on its market metrics: the company's mNAV fell below 1 and is trading at 0.93 according to Saylor Tracker data. At the same time, the company holds 671,268 bitcoins valued at approximately $58.63 billion, making it a significant market holder. These figures illustrate how Bitcoin price changes affect the valuation of public companies with large BTC balances.
Forecasts and Expectations for 2026
Le and other industry participants see positivity in traditional financial institutions and government bodies engaging more actively with Bitcoin, which they say has a long-term positive effect. In March, the US president signed an executive order to create a Strategic Bitcoin Reserve and US Digital Asset Stockpile, although a formal strategic plan has yet to be confirmed. For insights into major market players' views and institutional forecasts, check out materials with Galaxy Digital's perspective and 2026 analytics.
Why This Matters
Whether you mine with a single device or manage a farm of up to a thousand machines, understanding that the basic economic and institutional factors remain strong helps endure periods of volatility. Meanwhile, the current market panic and "Extreme Fear" index since December 12 mean short-term moves can be sharp and affect liquidity and prices when selling mining output.
It's also important to consider that large holders and public companies like Strategy are affected by price fluctuations: the drop of mNAV to 0.93 shows how quickly valuations change in public markets. Government initiatives, including the signed executive order on the Strategic Bitcoin Reserve, indicate growing institutional interest, which directly impacts long-term demand prospects.
What to Do?
- Check your setup's efficiency: assess breakeven points with current prices and electricity costs to understand profitability.
- Maintain liquidity reserves for sudden price drops; this helps keep operations running and cover expenses without forced BTC sales.
- If holding mined coins, plan a sales distribution strategy over time to avoid selling everything during periods of "Extreme Fear."
- Monitor public metrics of major holders and corporate indicators (e.g., mNAV), as they influence the market and may signal shifts in sentiment.