Bitcoin
Bitcoin Demand Set To Soar 10-Fold
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Michael Saylor, the executive chairman and co-founder of MicroStrategy Inc, anticipates a substantial surge in Bitcoin’s value following the US Securities and Exchange Commission’s approval of a spot ETF, and a subsequent surge in demand for the leading cryptocurrency.
Renowned as a Bitcoin advocate, Saylor reaffirmed his belief in the unparalleled potential for Bitcoin, foreseeing a tenfold upsurge in its value.
This week, Bitcoin hovered near the $36,000 mark, narrowly missing it before tumbling back to $34,300. The abrupt correction followed a nearly 25% climb in the last month, prompting some traders to seize profits and market participants to re-evaluate the driving forces behind the rally.
“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
Resilience Of Bitcoin And SEC ETF Prospects
Although the nearly 5% intraday retreat signaled what some analysts call a “cooling-off stage”, several market observers maintain a positive outlook on the crypto.
Despite the volatility, Saylor remained unfazed by the erratic price action. On November 1, MicroStrategy’s announcement of purchasing 155 Bitcoins for $5.3 million showcased an unwavering commitment to the cryptocurrency, underscoring the resilience of those who continually support Bitcoin through market fluctuations and price swings.
In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5pm ET as we discuss our Q3 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/w7eRUcGobi
— Michael Saylor⚡️ (@saylor) November 1, 2023
At present, the SEC is in the process of examining many applications for a Bitcoin ETF following a prolonged period of delay. According to numerous analysts, it is widely speculated that an approval may be forthcoming as early as January 2024.
Image: Screen grab from CNBC
During his discussion with CNBC, Saylor conveyed that a yearly $12 billion of natural selling is anticipated to transform into $6 billion annually, aligning with the escalating demand for bitcoin driven by spot bitcoin ETFs.
He underlined the prevalent bullish outlook, emphasizing the upcoming 12-month period’s potential as a result of the expected rise in demand and a concurrent reduction in supply, “and this is fairly unprecedented in the history of Wall Street,” he said.
Bitcoin currently trading at $34,835 territory. Chart: TradingView.com
Key Factors Driving Saylor’s Conviction In Crypto’s Future
Saylor’s conviction in the cryptocurrency is further derived from the convergence of several forthcoming Bitcoin-related developments throughout the upcoming year. Firstly, it is important to note that Bitcoin is scheduled to undergo a “halving” event in April 2024.
This event will result in a 50% reduction in Bitcoin mining incentives, so significantly decreasing the quantity of Bitcoin that is expected to be introduced into the market by miners.
With a valuation of $34,715 at the time of writing, based on figures by CoinMarketCap, and an impressive 24-hour trading volume of nearly $20 billion, Bitcoin is holding its ground and indicating a flurry of activity in the cryptocurrency space.
Image: Shutterstock
With a measly 2.1% decline, Bitcoin is still the market leader with a $678 billion market value, demonstrating its unwavering dominance. This developing narrative is fueling conversations about scarcity and value as the circulation supply of Bitcoin gets closer to the 19 million mark, which is close to its finite cap of 21 million.
Meanwhile, a significant breakthrough occurred when Bernstein, an investment research firm that had previously expressed doubts about Bitcoin’s prospects, recently issued an optimistic prognosis. They projected that by 2025, the cryptocurrency may be worth $150,000, if there was a real chance that a spot Bitcoin ETF would acquire approval. It’s important to remember that Bitcoin reached its highest point in November 2021, briefly surpassing $69,000.
Featured image from iStock
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