In an interview with journalist Natalie Brunell, Michael Saylor, executive chairman and co-founder of MicroStrategy, laid out his views on what could drive Bitcoin’s price next. His insights come at a time when the digital currency landscape is undergoing critical regulatory and institutional developments.
The next big catalyst for the Bitcoin price
Saylor has pinpointed the specific moment that he believes heralds the start of a new era for Bitcoin. “January 2024 marked the beginning of the period in which companies adopted Bitcoin,” he stated. The significance of this shift, according to Saylor, is closely tied to regulatory approvals and the distinctive path that Bitcoin is carving for itself amid a sea of digital assets.
At the heart of Saylor’s argument is the U.S. Securities and Exchange Commission’s (SEC) decision-making process regarding cryptocurrency spot exchange-traded funds (ETFs). He described the SEC’s approval of Bitcoin spot ETFs as the “first big catalyst.” This regulatory nod not only legitimizes Bitcoin in the eyes of institutional investors, but also increases its appeal as a viable business capital.
Now Saylor argues that the next decisive moment will depend on how the SEC handles other cryptocurrencies. “The second major catalyst will be the SEC’s denial of any other crypto application for spot ETFs,” Saylor explains. By denying these applications, the SEC would effectively position Bitcoin as the premier, unreplicated choice among cryptocurrencies, an outcome that Saylor sees as crucial to dispelling doubts about Bitcoin’s long-term viability and uniqueness.
“And if we actually see that the regulators deny the applications of the copies of other crypto assets, then we have checked the box. It will not be banned, it will not be copied,” Saylor noted.
Saylor elaborated on the implications of such regulatory decisions, using a metaphor related to material selection in large-scale engineering projects. He compared the decision-making process for business investments in Bitcoin to choosing between steel or bronze for the construction of a skyscraper.
“Once you realize there is only steel and there is no second best metal for civil engineering, the project moves forward,” he noted. This analogy compares Bitcoin to steel – the fundamental material with no substitute – leaving no doubt about its adoption in corporate portfolios.
Should we look for a new 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 each other #crypto application for a spot ETF…” –@saylor… pic.twitter.com/4aKarg6eAS
— Natalie Brunell ⚡️ (@natbrunell) May 6, 2024
This story is especially timely as the crypto sector is keeping a close eye on the SEC, especially regarding Ethereum, the second largest cryptocurrency by market cap. The final 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’s senior ETF analyst Eric Balchunas noted a decline in the likelihood of approval in March, citing a lack of communication between the SEC and ETF applicants, which he viewed as a negative signal for the immediate ETF prospects of Ethereum.
At the time of writing, BTC was trading at $63,835.
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