MicroStrategy CEO Michael Saylor believes that the cryptocurrency market has hit its bottom and that a Bitcoin rally is imminent. MicroStrategy is a business intelligence company and one of the largest owners of Bitcoin—the most valuable cryptocurrency in terms of market capitalization in the world.
In an interview, Saylor cited several factors that could drive Bitcoin to new highs in 2023. Specifically, he spoke about regulations and how BTC is safe when considering the positive classification by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both are leading regulatory authorities in the country, and their officials classify Bitcoin as a commodity with utility, rather than an unregistered security.
Saylor believes that while there is a ‘black cloud’ hovering over other assets apart from Bitcoin, they could be ‘regulated out of existence’. Consequently, capital is likely to shift from altcoins to BTC.
Besides regulation, he believes the upcoming halving of BTC could drive prices higher. In 2024, the Bitcoin network will halve miner rewards from the current 6.25 BTC to 3.125 BTC. This development will present a supply shock to the network and make BTC scarcer and more valuable. Although miner revenues could decrease, past halving events have resulted in significant price increases. This pattern could repeat next year.
Despite Ordinals being blamed for network bloat, Saylor remains optimistic about the service and its potential to drive the digital asset to new highs. Ordinals is a platform that enables users to attach files like texts and videos to Satoshis and effectively store them in the chain. A Satoshi is the smallest unit of BTC.
In a CNBC interview, Saylor—a Bitcoin permabull—believes that the recent strength of the coin could be the beginning of a bull run that could drive it to new highs in 2023. Bitcoin is consolidating and struggling to close convincingly above the $28,000 resistance level. Prices have been slightly sliding for most of May 2023 and have moved about 10% lower from around $31,000 in late April 2023. The coin fell to as low as $25,800 last week.
Despite the recent dip, Bitcoin remains in an upward trend. Notably, the bears have been unable to reverse the gains made between mid-March and early April 2023.