In an interview with journalist Natalie Brunell, Michael Saylor, executive president and co-founder of MicroStrategy, explained his vision on what could boost the price of Bitcoin. Insights from him come at a time when the digital currency landscape is undergoing crucial regulatory and institutional developments.
The Next Big Catalyst for Bitcoin Price
Saylor identified the specific moment that he believes heralded the beginning of a new era for Bitcoin. “January 2024 marked the beginning of Bitcoin’s corporate adoption period,” he stated. The importance of this change, according to Saylor, is closely linked to regulatory approvals and the distinct path that Bitcoin is carving for itself amid a sea of digital assets.
The core of Saylor’s argument is the U.S. Securities and Exchange Commission’s (SEC) decision-making process regarding spot cryptocurrency exchange-traded funds (ETFs). He described the SEC approval of Bitcoin spot ETFs as the “first great catalyst”. This regulatory nod not only legitimizes Bitcoin in the eyes of institutional investors, but also increases its appeal as a viable corporate treasury asset.
Now, Saylor argues that the next turning point will depend on how the SEC handles other cryptocurrencies. “The second big catalyst will be the SEC’s denial of any further crypto applications for spot ETFs,” Saylor explained. By denying these applications, the SEC would effectively position Bitcoin as the unreplicated top choice among cryptocurrencies, an outcome that Saylor sees as critical to dispelling doubts about Bitcoin’s long-term viability and uniqueness.
“And when we actually see regulators deny applications for copies of other crypto assets, then we will have checked the box. It won’t be banned, it won’t be copied,” Saylor noted.
Expanding on the implications of such regulatory decisions, Saylor employed a metaphor involving the choice of materials in large-scale engineering projects. He compared the decision-making process in corporate investment in Bitcoin to choosing between steel or bronze for building a skyscraper.
“When you realize that there is only steel and that there is no second best metal for structural civil engineering, the project moves forward,” he noted. In this analogy, Bitcoin is compared to steel – the fundamental material with no substitute – eliminating any hesitation about its adoption in corporate wallets.
We should be on the lookout for another catalyst that will stimulate more #Bitcoin adoption?
“The first major catalyst was the SEC’s approval of the spot #ETFs for Bitcoin… the second major catalyst will be the SEC’s denial of all others #crypto request for a spot ETF…” –@saylor… pic.twitter.com/4aKarg6eAS
-Natalie Brunell ⚡️ (@natbrunell) May 6, 2024
Notably, this narrative It’s timely as the crypto industry watches the SEC closely, especially when it comes to Ethereum, the second-largest cryptocurrency by market cap. The deadline for the SEC to approve or deny the VanEck Spot Ethereum ETF is May 23, 2024, a decision that has been repeatedly postponed.
Bloomberg Senior ETF Analyst Eric Balchunas noted a decrease in approval probability in March, citing lack of communication between SEC and ETF applicants, which he saw as a negative sign for Ethereum’s immediate ETF prospects.
At press time, BTC traded at $63,835.
Featured image by tesmanian, chart by TradingView.com
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