The head of MicroStrategy, Michael Saylor, explained what factors could lead to a tenfold increase in the price of Bitcoin in the short and medium term, writes RBC Crypto with reference to interview investor.
According to the head of MicroStrategy, in the near future, market participants may face both a reduction in the supply of Bitcoin and an increase in demand for it. This is due to the upcoming halving, which is expected in April 2024. Now, according to Saylor, Bitcoin miners are selling $1 billion worth of the first cryptocurrency every month. Next year this figure will be halved, and demand will increase due to the arrival of institutional players.
Saylor also recalled that very soon new rules for accounting for Bitcoin on the balance sheet of companies will be introduced in the United States. In his opinion, this will allow large corporations to hold digital assets in their accounts and correctly reflect their book value.
The head of MicroStrategy also touched upon the trial of the head of the FTX exchange, which collapsed in November 2022, Sam Bankman-Fried. According to Saylor, the cryptocurrency market must get rid of such market participants in order to develop further. The investor also mentioned that most cryptocurrency tokens are set to disappear.
At the end of October, amid a sharp rise in the cryptocurrency market, MicroStrategy’s Bitcoin trading position became profitable. The company began buying digital currency more than three years ago, but has recently been in the red for a long time.
Former MicroStrategy CEO and now Chairman of the Board of Directors Michael Saylor is considered one of the famous Bitcoin enthusiasts and continues to actively accumulate coins. Only once, in December 2022, the company sold 708 bitcoins worth $11 million.
The company has about 0.75% of existing bitcoins on its balance sheet, and it seems that it does not intend to curtail purchases. In August this year, MicroStrategy said it could raise an additional $750 million in a stock offering and use part of the proceeds to acquire a digital asset.
Source: Cryptocurrency
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