David Bailey, a key figure behind the Bitcoin treasury strategy and CEO of Nakamoto, revealed insights into how Wall Street is aggressively targeting crypto-centric firms, manipulating markets behind closed doors, and altering the power dynamics within the Bitcoin ecosystem.
During an exclusive conversation with Scott Melker on The Wolf of All Streets podcast, Bailey emphasized that institutional adoption of Bitcoin remains in its early stages. He warned that major Wall Street players are using ruthless methods to either dismantle or dominate this emerging sector.
Bailey also challenged the long-standing belief in Bitcoin’s “four-year cycle,” suggesting that this once-reliable pattern no longer holds true for investors.
A particularly revealing moment came when Bailey discussed his interactions with Wall Street investment banks and financial institutions. He sharply criticized how publicly traded companies focused on Bitcoin are exploited by these entities during their pursuit of capital:
“Wall Street cares only about profit. They’ll put on a friendly facade, say all the right things to win your trust, then betray you without hesitation. To them, you’re not a client but valuable livestock being funneled through a money-making machine. Their only goal is to extract as much cash from you before you vanish.”
Bailey pointed out that numerous new Bitcoin ventures have been trapped in burdensome debt arrangements and PIPE (Private Investment in Public Equity) deals while simultaneously facing heavy short-selling pressure from institutional investors.
Implying that these institutional forces are responsible for recent market downturns and heightened volatility, he highlighted targeted campaigns against prominent firms like MicroStrategy. According to Bailey, traditional finance sectors feel threatened by the rise of companies centered around Bitcoin: “The fear-mongering aimed at MicroStrategy is both astonishing and misleading.”
He described these crypto-focused enterprises as essentially evolving into “next-generation banks”, posing a significant challenge to conventional banking systems. Despite ongoing challenges from established financial powers, Bailey reaffirmed his forecast: “In time, every company will hold BTC as part of their treasury reserves.”
Tackling one of cryptocurrency’s most entrenched beliefs—the four-year halving cycle—Bailey argued this framework has become obsolete:
“I used to trust the four-year cycle model myself but believe it has ended now. Market structures have shifted along with buyer demographics. While some legacy investors may still follow old patterns by selling accordingly, institutional liquidity has disrupted this system entirely—demanding we adopt fresh perspectives moving forward.”
This disruption might cause short-term uncertainty but could pave the way for what Bailey calls a 'Super Cycle’—a prolonged period where Bitcoin experiences sustained growth momentum.
Furthermore, he stressed that merely accumulating and holding (HODLing) BTC isn’t viable long-term business strategy for corporations anymore—they must evolve into profitable entities generating real cash flow if they want lasting success.
*Please note: This content does not constitute investment advice.*