In an interview with journalist Natalie Brunel, MicroStrategy executive chairman and co-founder Michael Saylor explained his vision of what could drive Bitcoin's price next. His insights come at a time when the digital currency landscape is experiencing pivotal regulatory and institutional developments.
The Next Big Catalyst for Bitcoin Prices
Thaler identified a specific moment that he believes marked the beginning of a new era for Bitcoin. “January 2024 was the beginning of a period of corporate adoption of Bitcoin,” he said. Saylor said the significance of this change is closely tied to regulatory approval and the unique path Bitcoin is carving out for itself in a sea of digital assets.
At the heart of Saylor's discussion is the U.S. Securities and Exchange Commission's (SEC) decision-making process regarding crypto spot exchange-traded funds (ETFs). He said the SEC's approval of the Bitcoin Spot ETF was the “first big catalyst.” This regulatory consent not only legitimizes Bitcoin in the eyes of institutional investors, but also increases its attractiveness as a viable corporate financial asset.
Now, Thaler argues, the next decisive moment will depend on how the SEC handles other cryptocurrencies. “The second big trigger would be the SEC rejecting all other crypto applications for spot ETFs,” Saylor explained. By rejecting these applications, the SEC is effectively positioning Bitcoin as the best unimitated alternative among cryptocurrencies, and Saylor believes that this outcome will undermine Bitcoin's long-term viability. We believe that this is important in order to dispel doubts about its uniqueness.
“And when we actually see regulators denying applications for copies of other crypto assets, we will have checked the box. It can't be copied,” Saylor said.
Expanding the meaning of such regulatory decisions, Thaler adopted a metaphor for material selection in large engineering projects. He likened the decision-making process for companies investing in Bitcoin to choosing between steel and bronze when building a skyscraper.
“The project moves forward when we realize that there is only steel and there is no second best metal for structural civil engineering,” he said. In this analogy, Bitcoin is likened to steel, a basic material with no substitutes, and eliminates the hesitancy to introduce it into a company's portfolio.
Should we focus on new catalysts for further growth? #bitcoin Passed?
“The first big impetus was SEC spot approval. #ETF The second big trigger for Bitcoin will be the SEC denying other Bitcoins. #cipher Apply for Spot ETF…” –@Sailor… pic.twitter.com/4aKarg6eAS
— Natalie Brunell ⚡️ (@natbrunell) May 6, 2024
This story is timely, especially as the crypto sector is closely monitoring the SEC regarding Ethereum, the second-largest cryptocurrency by market capitalization. The SEC's final deadline to approve or deny the VanEck Spot Ethereum ETF is May 23, 2024, but this decision has been repeatedly delayed.
Eric Balchunas, senior ETF analyst at Bloomberg, cited a lack of communication between the SEC and ETF applicants, noting that the chances of approval in March have declined, which could be the reason for Ethereum's immediate ETF It was seen as a negative signal for the outlook.
At the time of writing, BTC was trading at $63,835.
Featured image from tesmanian, chart from TradingView.com
