Foreign media commentators believe that investor Lawrence Lepard views the recent declines in Bitcoin and Strategy as an emotion-driven correction rather than a long-term trend reversal. He judges that this sell-off is similar to the bottoming phases of past cycles, where prices tend to recover quickly after the panic subsides.
The bullish logic still revolves around Bitcoin.
Lepard stated that he recently increased his holdings in Strategy due to amplified market concerns about the company. In his view, Strategy remains a highly resilient exposure to Bitcoin, with volatility exceeding that of directly holding BTC, which is why its stock price may outperform spot prices during periods of Bitcoin price increases.
He believes that concerns about Strategy's balance sheet are not entirely unfounded. According to him, the company still has several years until its first major debt maturity date, and management retains various financing and capital restructuring tools, including the option to adjust preferred stock dividend arrangements if necessary.
Bitcoin valuations are said to be in a low range.
Lepard also provided a longer-term price assessment. Citing the Bitcoin Power Law model, he stated that the current model corresponds to a Bitcoin valuation of approximately $134,000, while the market price remains around $58,000 to $60,000. This means that, according to this model, Bitcoin is still at the lower end of its historical valuation range.
He further stated that Bitcoin is expected to begin a new bull market within the next one to two years, mentioning that the price could rise to $180,000. However, he also believes that a further decline in the short term cannot be ruled out. For Strategy, its future performance will primarily depend on whether Bitcoin can maintain its long-term upward trend.
Inflation and monetary expansion remain supporting factors.
Beyond the crypto market itself, Lepard also views the macroeconomic environment as a long-term support for Bitcoin. He believes policymakers are more concerned with preventing financial system instability than with suppressing inflation. Therefore, governments are likely to continue expanding debt, maintaining liquidity support, and mitigating downward economic pressures through more accommodative policies.
Based on this assessment, the weakening purchasing power of fiat currencies is unlikely to end anytime soon, which is why he remains optimistic about Bitcoin's long-term investment value. The core argument of the article is that once Bitcoin re-enters an upward cycle, Strategy, as a leveraged exposure, could see its share price rise several times greater than Bitcoin's gains.
