Former MicroStrategy CEO Says Bitcoin Rally Just Getting Started
MicroStrategy is a business intelligence firm and one of the biggest holders of Bitcoin, the world’s most valuable cryptocurrency by market capitalization. And Michael Saylor, the former CEO of MicroStrategy, believes the cryptocurrency market is bottoming, and a Bitcoin rally is on the horizon.
Regulation, Halving, And Ordinals Are Drivers
In the interview, Saylor points out several tailwinds that may drive BTC to new 2023 highs. Specifically, he talks about regulations and how BTC is safe, considering the favorable classification from the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two of the top regulators in the country. Their officials classify Bitcoin as a commodity with utility and not an unregistered security.
Saylor opines that other assets besides Bitcoin have a “black cloud hanging” over them and could be “regulated out of existence.” Consequently, he continued, capital will most likely flow from altcoins to BTC.
I think the crypto tokens and securities will be regulated, perhaps out of existence. Bitcoin is the most secure network. It’s the most secure asset. Everything else has got a black cloud hanging over it. You will see a consistent flow of capital from the rest of the crypto ecosystem into Bitcoin.
Besides regulation, he thinks the upcoming BTC halving event could propel prices 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 supply shock on the network, making BTC scarcer and more valuable. Though miner revenue might drop, past halving events have led to significant price gains. This pattern may be replicated next year.
Even though Ordinals has been blamed for bloating the network, Saylor remains bullish about the service and that it will propel the digital asset toward new highs. Ordinals is a platform allowing users to attach files, such as texts and videos, to Satoshis, effectively storing them on-chain. A satoshi is the smallest unit of BTC.
Bitcoin Bull Run Incoming
Talking to CNBC, Saylor, a Bitcoin permabull, thinks the recent firmness of the coin could be the start of a bull run that could push it to new 2023 highs.
BTC has been consolidating, failing to convincingly close above the $28,000 resistance level. For the better part of May 2023, prices have been edging lower, moving from around the $31,000 level recorded in late April 2023. Since April, the coin has dropped by around 10%, falling to as low as $25,800 last week.
Despite the recent contraction, Bitcoin remains within a bullish formation. Notably, bears have failed to reverse gains posted from mid-March to early April 2023.