MicroStrategy President Michael Saylor is optimistic about the future of Bitcoin, expecting demand for the cryptocurrency to double following the halving and the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).
In an interview with Fox Business, Saylor highlighted three key factors that he says will drive the price of BTC towards $5 million. Saylor explained that BTC supply and demand “are balanced right now.”
However, he emphasized that two events will boost the cryptocurrency’s price: the halving in April next year, when the supply of Bitcoin is halved, and the imminent approvals of spot Bitcoin ETFs by the SEC.
Saylor highlighted that, after the halving and the launch of spot Bitcoin ETFs, “demand has to at least double. So, the only thing that will adjust there is the price to reach the market.”
The MicroStrategy president advised investors to keep an eye on Bitcoin halving and spot ETF approvals, noting that the next 12 months will be “quite auspicious for the asset class.”
Saylor believes that the price of Bitcoin will eventually reach the $5 million mark. During a recent discussion, he mentioned three massive catalysts for accelerating this rise.
“Those three things don’t get us to $500,000, they get us to $5 million,” he said.
According to Saylor, the first catalyst is “a spot ETF where someone can buy $100 million worth of BTC through a product guaranteed by US regulators.”
The second is: “your bank will hold it for you and lend against it”. He added that the third is the ability for companies to value their Bitcoin investments on their balance sheets based on fair value.
The Nasdaq-listed company implemented a Bitcoin strategy in August 2020 and has been actively accumulating BTC for its treasury since then.