What to know:

• Michael Saylor said bitcoin's sideways trading reflects "OG" holders cashing out while institutions wait for lower volatility.

• He argued that bitcoin's lack of cash flows is a feature, comparing it to gold and other stores of value.

• Strategy (formerly MicroStrategy) has created new bitcoin-backed credit products designed to give the asset cash-flow-like qualities.

Bitcoin's recent stretch of muted price action is a sign of strength, not weakness, according to Strategy (MSTR) Executive Chairman Michael Saylor.

Speaking on an episode of Natalie Brunell's "Coin Stories" podcast released Friday, Saylor argued that the market is in a consolidation phase as long-time holders sell portions of their stacks and institutions prepare for bigger allocations. "If you zoom out and look at the one-year chart, bitcoin is up 99%," he said. "The volatility is coming out of the asset — that's a really good sign."