Bitcoin, an essential subject of discussions on digital finance, fascinates with its promises of dizzying returns and its marked fluctuations. Michael Sayloran emblematic figure of the industry, goes against the wind of skepticism by proposing a perspective in which the value of Bitcoin could increase tenfold.
According to him, several levers, ranging from widespread adoption to technological innovations, could play a crucial role in this meteoric rise. We will decipher the elements which, according to this expert, could transform the Bitcoin market and justify such a prediction.
Michael Saylor’s Optimism: A Bitcoin Surge in Sight
Michael Saylor, co-founder and executive chairman of MicroStrategy, recently reiterated his enthusiasm for Bitcoin during an interview with CNBC. He expresses absolute confidence in an imminent rise in the price of this cryptocurrency, an increase which, according to him, would be unprecedented in modern financial history. But where does such confidence come from? Saylor relies on a series of events related to Bitcoin which should materialize over the coming year.
One of the most significant events is the “halving”, scheduled for next April. This mechanism, inherent to the functioning of Bitcoin, will reduce the rewards allocated to miners by 50%, therefore decreasing the supply of new Bitcoins on the market. This factor alone could be an important catalyst, reducing supply while maintaining or even increasing demand.
At the same time, rumors are rife on Wall Street regarding the possible approval of a Bitcoin spot ETF. Approval from American regulators, hoped for by some before Christmascould mark a notable opening of Bitcoin to general public investors.
The fundamentals of Bitcoin: Between reduction in supply and growth in demand
Saylor’s comments highlight the potential impact of these developments on the price of Bitcoin.
“You will see $12 billion in organic sales per year turn into $6 billion — at the same time as Products like spot Bitcoin ETFs increase demand for Bitcoin “, he explains.
This dynamic of contraction of supply and expansion of demand is, in his opinion, a remarkable phenomenon which would justify optimism for the 12 months to come. Michael Saylor’s optimism towards Bitcoin is based on a vision on whichFinancial institutions play a stabilizing role.
“When Wall Street banks and responsible custodians manage Bitcoin, and the industry takes its eyes off all the shiny little tokens that have distracted and wiped out shareholder value, I think the industry takes it to the next level and that we let’s multiply by ten by then,” Saylor said in a tweet.
“When banks and responsible custodians are managing #Bitcoin & the industry takes its eyes away from all of the shiny little tokens that have distracted & demolished shareholder value, I think the industry moves to the next level and we 10X from here.” @saylor to @SaraEisen pic.twitter.com/sVKugHt7Tx
— Brad Mills 🔑⚡️ (@bradmillscan) November 2, 2023
Saylor goes on to argue that the growing involvement of renowned financial institutions in Bitcoin investing could stabilize not only the cryptocurrency itself, but also the crypto industry as a whole. This would constitute another propelling factor for the price of Bitcoin.
Indeed, Bitcoin has been on an uptrend in recent weeks, climbing more than 11% to $31,000 late last month, boosted by anticipation of the approval of a spot Bitcoin ETF in the United States. The rise continued, peaking at $35,878 last week, a record for the year 2023.
Price projection for Bitcoin
Currently, according to CoinMarketCap, the cryptocurrency currently trading at $34,196. Bernstein, an investment research firm, which had previously expressed reservations about the potential of Bitcoin, recently predicted that the currency could reach $150,000 by 2025. Partly thanks to the growing likelihood of a spot Bitcoin ETF being approved.
It should be noted that Bitcoin had reached its all-time high in November 2021, briefly surpassing $69,000. With such a series of potential events and institutional analyses, Saylor’s statements appear to have tangible foundations that could, indeed, contribute to a significant multiplication in the value of Bitcoin.
Source: Decrypt
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