The US Federal Reserve’s Wednesday decision to maintain interest rates between 5.25% to 5.5% appears to have confirmed the market’s optimistic view since October. After many days of doldrums, the cryptocurrency market recovered, allowing Bitcoin (BTC) to consolidate gains and gather liquidity. Investors also bought more BTC on falls to $33,000 before the following bull run.
After the FOMC meeting, bitcoin prices rose past $35,000 to a new yearly high. BTC is $35,383, up 3.3% in 24 hours. Ethereum, Cardano, and Solana followed suit, extending their uptrends to 2.1%, 7.8%, and 13.2% gains, respectively. An always-pro-Bitcoin analyst is predicting a last-quarter bull run; here’s why.
In a recent appearance on CNBC, the outspoken Bitcoin advocate and executive chairman of MicroStrategy, Michael Saylor, reiterated his unwavering faith in Bitcoin’s potential. While it’s no secret that Saylor is a fervent Bitcoin bull, his insights into specific catalysts for the cryptocurrency’s growth are worth noting.
Saylo’s Bullish Stance on Bitcoin, 10X Incoming?
Saylor highlighted several imminent factors that could propel Bitcoin to new heights. One major development on the horizon is a significant reduction in Bitcoin supply, coupled with surging demand. Bitcoin miners, Saylor pointed out, currently need to sell Bitcoin to cover operational costs, amounting to a staggering $1 billion per month.
However, the forthcoming halving event in April 2024 will slash miners’ available supply for sale by half, to $6 billion per year. This supply reduction could potentially ignite a supply-demand imbalance in favor of Bitcoin.
Additionally, Saylor emphasized the impending implementation of fair value accounting rules for corporate Bitcoin holdings. According to him, this regulatory shift will enable more companies to integrate Bitcoin into their treasury assets, potentially creating substantial shareholder value through their balance sheets.
Current Market is Full of Scams
Saylor also weighed in on the current state of the crypto industry, addressing ongoing issues such as the fraud trial of former crypto prodigy Sam Bankman-Fried. He contended that the crypto landscape needs to evolve and mature, shedding its early “crypto cowboy” image. He suggested that the industry should distance itself from the multitude of speculative crypto tokens and unreliable custodians that have eroded shareholder value over the years.
So when Saylor says “adult supervision” in the crypto space it reflects a broader sentiment echoed by many industry leaders. By prioritizing Bitcoin’s robustness and regulatory compliance over speculative tokens, Saylor envisions a future where the industry can grow and mature exponentially. This vision, if realized, could propel Bitcoin to unprecedented heights, potentially tenfold from current levels.
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