The price of Bitcoin could rise in the future for several reasons, including Michael Saylor pointing out the arrival of the fourth halving and the possible approval of a spot ETF.
During an exclusive interview on the show Squawk on the StreetOn CNBC's CNBC, MicroStrategy President Michael Saylor discussed the most compelling reasons why the price of Bitcoin could rise in the future and start a new bull run.
First, the American businessman spoke about the arrival of the fourth halving of the Bitcoin blockchain and how this event will impact the supply of cryptocurrency in the market.
Bitcoin will be scarcer after the next halving
Historically, we have seen how the halving directly affects the supply and demand of Bitcoin.
The halving halves the block reward for miners and, with it, the issuance of new bitcoins, so, with each arrival of this event, Bitcoin has become scarcer on the market, increasing its demand, due to this scarcity.
During the interview, Saylor highlighted that he foresees the same impact on the arrival of the fourth halving on the network, which It will occur between the months of April and May of next year.
Saylor emphasized that Demand for Bitcoin is on the rise, while the supply of the cryptocurrency on the market is going to contract after this event.
Saylor also indicated that selling pressure from Bitcoin miners will decrease. after the next halving. According to him, BTC miners will no longer have to sell a large amount of bitcoins to cover their operating expenses, which will result in a lower supply of bitcoins on the market. This, given the growing demand for the cryptocurrency, could push the price of BTC up to new all-time highs.
“We will see $12.000 billion in natural sales a year, converted to $6.000 billion in natural sales a year.”
A spot ETF will increase demand for Bitcoin
Another reason that will boost the price of Bitcoin, according to Saylor, is the possible approval of a Bitcoin spot ETF in the United States.
Like many analysts and investment experts, Saylor believes that the approval of such an investment vehicle for Bitcoin will reinforce its narrative as an investment asset, which could accelerate the adoption and demand for BTC.
During the interview on CNBC, the president of MicroStrategy pointed out that the official entry of Bitcoin to Wall Street will make many investors who are not familiar with the cryptocurrency, become aware of it, which will further increase demand in the market.
Saylor also noted that Bitcoin could become a treasury asset for many companies, just as it is for his company MicroStrategy, which holds a total of 158.400 BTC, currently.
“…That’s why we’re all pretty optimistic for the next 12 months”, the businessman said, referring to the price of Bitcoin.
“You can never have too many bitcoins”
In the interview, Saylor emphasized that he remains steadfast in his long-term Bitcoin investment strategy.
Thus, regarding the impressive amount of bitcoins that his company owns, he indicated that “You can never have too many bitcoins”, suggesting that MicroStrategy will continue to make recurring purchases of Bitcoin in the future, applying the “Dollar Cost Averaging” or DCA strategy, to continue accumulating the cryptocurrency.
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Another prominent figure in the crypto industry, who shares Saylor's expectations and optimistic view on the price of Bitcoin in the future, is Will Clemente, co-founder of the firm Reflexivity Research, who recently said that Bitcoin will become scarcer than gold, in terms of the stock-to-flow ratio, after the next halving.
Analysts at Grayscale, Coinshares, Glassnode and JPMorgan also predict a positive impact from the upcoming Bitcoin network halving and are optimistic about the possible approval of a spot ETF in the US market.
Regarding the regulatory environment, Saylor said that the industry will become more mature as it moves towards more mature oversight, which will ensure stability and investor protection.
Continue reading: Bitcoin will have different use cases for different needs, says Michael Saylor
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
Main image from CNBC
