In an illuminating discourse with seasoned journalist Natalie Brunell, Michael Saylor—the co-founder and executive chairman of MicroStrategy—shared his poised contemplation on the imminent catalysts that could potentially drive Bitcoin’s price higher. His imparted wisdom arrives at a pivotal juncture in time when the realm of digital currency is intertwined with substantial regulatory alterations and institutional advancements.
Saylor identified a defining moment that, from his perspective, signaled a paradigm shift in Bitcoin’s journey—the corporate world’s widespread adoption of Bitcoin that dawned in January 2024. Saylor attributed the underlining importance of this transition to regulatory approvals and Bitcoin’s groundbreaking trajectory in the convoluted maze of digital assets.
At the heart of Saylor’s stance lies the decision-making prowess of the US Securities and Exchange Commission (SEC) regarding cryptocurrency-related Spot Exchange-Traded Funds (ETFs). He deemed the SEC’s endorsement of Bitcoin spot ETFs as the “primary grand catalyst.” This regulatory approval doesn’t merely grant Bitcoin legality in the institutional investor’s gaze . Instead, it enhances its allure as a plausible asset for corporate treasury.
Saylor further reasons that the ensuing pivotal moment will pivot on the SEC’s approach towards the remaining cryptocurrencies. He foresees the “next grand catalyst” in SEC’s rejection of all the other crypto applications for spot ETFs. By refusing these applications, Saylor suggests, the SEC can effectively establish Bitcoin as the unparalleled, unrivaled choice amidst the myriad of cryptocurrencies—an outcome he deems crucial to dissipate doubts over Bitcoin’s long-term survival and singularity.
“And when regulators rebuff the applications from copies of other crypto assets, we would have crossed a critical milestone. It will neither be banned nor duplicated,” Saylor stated.
Elucidating the repercussions of such regulatory verdicts, Saylor utilized the metaphor of material selection in mammoth engineering projects. He illustrated the corporate investment decision-making process in Bitcoin to choosing between steel or bronze for constructing a skyscraper.
“When you discern that steel is the sole contender and there’s no runner-up metal fit for structural civil engineering, the project advances,” Saylor elaborated. In his analogy, Bitcoin assumes the role of steel— an irreplaceable foundational material, eradicating any indecisiveness about its incorporation in corporate portfolios.
This narrative holds a special relevance in the current context, when the crypto sector anxiously observes the SEC’s actions, specifically regarding Ethereum—the second-largest cryptocurrency by market capitalization value. The SEC’s final call on the VanEck spot Ethereum ETF is expected by May 23, 2024 – the decision that has been on a perpetual delay.
Bloomberg’s senior ETF analyst, Eric Balchunas, marked down the probabilities of approval in March, attributing it to the sparse communication between the SEC and ETF applicants— a negative omen for Ethereum’s immediate ETF prospects.
As of the last update, Bitcoin was exchanging hands at $63,835.
