Strategy Inc (NASDAQ:MSTR) Executive Chairman Michael Saylor is working on a “flywheel” to propel Bitcoin (CRYPTO: BTC) to his $1 million price target, according to prominent industry experts.

Why Traders Think The “Flywheel” Is Strengthening

Prominent Bitcoin advocate Scott Melker argued on the Lark Davis show on May 15 that investors are increasingly front-running expected Bitcoin purchases tied to Strategy's capital raises and preferred-share programs.

"If STRC remains popular, it becomes a self-fulfilling flywheel," the analyst said.

Strategy's STRC preferred shares reportedly moved back above par value, potentially allowing the company to accelerate additional Bitcoin purchases.

Strategy could continue purchasing billions of dollars' worth of Bitcoin on a recurring basis if demand for STRC products remains strong.

Melker said Bitcoin's halving impact now matters less from a market-supply perspective compared with large institutional buyers consistently absorbing available liquidity.

"Somebody buying billions of dollars every month on a schedule without relenting ever is definitely something that you can count on in a limited supply asset," Melker said.

Why Saylor’s “Sell Bitcoin” Comments Sparked Debate

The analysts also addressed recent controversy after Saylor suggested Strategy could eventually sell some Bitcoin if necessary.

Melker argued the comments were likely tied more to SEC requirements surrounding STRC securities disclosures than a fundamental shift in Strategy's Bitcoin thesis.

"The SEC needs to hear that if retail gets wrecked, they'd be willing to sell because of how they're advertising it," the analyst said.

Strategy may need to preserve optionality around selling Bitcoin for regulators to view the underlying BTC holdings as valid collateral backing its preferred-share products.

Is The Four-Year Bitcoin Cycle Dead?

Davis also questioned whether Bitcoin's traditional four-year halving cycle remains relevant.

Melker argued Bitcoin's market structure has fundamentally changed due to ETFs, institutional adoption and evolving liquidity dynamics.

"I don't think it remains a four-year cycle," the analyst said, noting altcoins never experienced the type of broad speculative boom typically associated with prior cycles.

Image: Shutterstock