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MicroStrategy is a business intelligence firm and one of the largest holders of bitcoin, the world’s most valuable cryptocurrency by market capitalization. And Michael Saylor, the former CEO of MicroStrategy, believes that the crypto market is bottoming out, and that a rally in bitcoin is on the horizon.
Regulation, Halving and Ordinals Are Drivers
In InterviewSaylor pointed to several tailwinds that could propel BTC to new 2023 highs. Specifically, he talks about regulations and how BTC is safe considering favorable classifications 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 as an unregistered security.
Saylor believes that there is a “dark cloud hanging over” assets other than bitcoin that could be “regulated out of existence.” As a result, he continued, capital will most likely flow from altcoins to BTC.
I think crypto tokens and securities will be regulated, maybe out of existence. Bitcoin is the most secure network. It is the safest asset. A dark cloud is hanging over everyone else. You will see a steady flow of capital from the rest of the crypto ecosystem into bitcoin.
Apart from regulation, he believes that the upcoming BTC halving event could drive 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 supply shock to the network, making BTC scarcer and more valuable. While miners may see a drop in revenue, the events of the previous halving have resulted in a significant increase in prices. This pattern may be repeated next year.
Even though Ordinals has been blamed for bloating the network, Saylor is optimistic about the service and how it will propel the digital asset to new heights. Ordinals is a platform that allows users to attach files, such as text and video, to Satoshi, effectively storing them on-chain. Satoshi is the smallest unit of BTC.
bitcoin bull run incoming
talking to cnbcSaylor, a bitcoin permabull, thinks the coin’s recent strength could be the start of a bull market that could push it to new 2023 highs.
BTC is consolidating, failing to close above the $28,000 resistance. For the better part of May 2023, prices have been correcting lower from levels around $31,000 recorded in late April 2023. Since April, the coin has fallen by around 10%, falling to a low of $25,800 last week.
Despite the recent contraction, bitcoin remains a bullish proposition. Notably, the bears have failed to reverse the gains posted from mid-March to early April 2023.
Feature image from Canva, chart from TradingView
