- MicroStrategy's Michael Saylor says the bitcoin price has bottomed out.
- Crypto regulation will soon eliminate bitcoin's competitors, according to Saylor.
- This, along with the Bitcoin halving and the Ordinals protocol, are also bullish.
MicroStrategy's Michael Saylor says that bitcoin's current rally is, in fact, the start of a new bull run.
The software company co-founder attributes the new bull market to the bitcoin halving, increased adoption of the crypto asset and a regulatory crackdown on the industry that should benefit bitcoin.
Investor and developer interest will begin to shift away from other blockchains, Saylor says, to the Bitcoin network as regulation begins to weed out competitors like Ethereum. Earlier this year, the chairman of the US Securities and Exchange Commission, Gary Gensler, said that "everything that is not bitcoin" falls under securities laws.
โI think crypto tokens and crypto values โโwill be regulated, perhaps disappearing,โ he said. CNBC on Friday, adding that the token is the only product the SEC is not going to regulate. "Bitcoin is the most secure network. It is the most secure asset. Everything else has a black cloud over it."
He added: โYou will see a steady stream of capital flowing in from the rest of the crypto ecosystem [into] bitcoin".
The Financial Accounting Standards Board also recently proposed orientation on crypto accounting and reporting, says Saylor, which is also a major milestone. It gives companies that have crypto on their balance sheets, like MicroStrategy, greater clarity and transparency for their shareholders, which could lead to more mainstream adoption.
"The FASB's initiative to adopt fair value accounting is a very auspicious development," he said.
This, along with Bitcoin's halving and a migration of Ordinals sign-up activity on its network, are also bullish.
Ordinals is a protocol that extends the blockchain use case and recently helped fuel a new record for daily Bitcoin transactions also. The Bitcoin halving, a technical event that occurs roughly every four years, is tentatively scheduled for April 2024. This could increase the price of crypto by increasing the scarcity of bitcoin because the halving may reduce the amount of new bitcoins launched.
Although the space is going through "growing pains," Saylor says there are still plenty of bullish factors for bitcoin.
โPretty much all bad leverage has been eliminated. Everybody in the business of shorting bitcoin, remortgaging bitcoin, lending bitcoin, they all have [gone] spoiled. The remaining trades that can be shorted are under a great deal of regulatory pressure," Saylor told the outlet.
He added: โI think Bitcoin has bottomed out. I think there is no leverage. I think we are in a bull run.โ
