MicroStrategy is a business intelligence company and one of the largest holders of Bitcoin, the world’s most valuable cryptocurrency by market capitalization. Michael Saylor, former CEO of MicroStrategy, believes that the cryptocurrency market is nearing the bottom, and that Bitcoin’s rally is on the horizon.
Regulatory, subordinate, and ordinal are the drivers
In the interviewSaylor points out several tailwinds that could push Bitcoin to new highs in 2023. Specifically, he talks about regulations and how BTC is safe, given the appropriate rating from the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), two of the largest regulators in the country. Their officials classify bitcoin as an interest commodity and not an unregistered security.
Saylor sees other assets besides Bitcoin as having a “black cloud hanging” over them and could be “regulated out of existence.” Hence, go on, capital is likely to flow from altcoins to BTC.
I think cryptocurrency tokens and securities will be regulated, possibly out of existence. Bitcoin is the most secure network. It is the safest asset. Everything else has a black cloud hanging over it. You will see a steady flow of capital from the rest of the cryptocurrency ecosystem into Bitcoin.
Besides regulation, he believes that the upcoming BTC halving event may push the price higher. In 2024, the Bitcoin network will halve miner rewards from the current 6.25 BTC to 3.125 BTC.
This development will be a shock to the supply on the network, making BTC even more scarce and valuable. Although miners’ revenues may be lower, the previous halving events led to significant price gains. This pattern can be repeated next year.
Despite blaming the Ordinals for bloating the network, Saylor remains optimistic about the service and that it will propel digital assets to new heights. Ordinals is a platform that allows users to attach files, such as texts and videos, to Satoshis, effectively storing them on-chain. Satoshi is the smallest unit of Bitcoin.
Bitcoin Bull Run is incoming
Talking to CNBCSaylor, a perpetual bitcoin currency, believes that the currency’s recent strength could be the start of a bullish wave that could push it to new highs in 2023.
BTC was consolidating, and it failed to close convincingly above the $28,000 resistance. For the better part of May 2023, prices have been trending lower, moving from the $31,000 level recorded in late April 2023. Since April, the coin has fallen about 10%, dropping to $25,800 last week.
Despite the recent downturn, Bitcoin is still in a bullish formation. Notably, the bears failed to reverse the gains made from mid-March to early April 2023.
Featured image from Canva, chart from TradingView
