Michael Saylor said that if the U.S. Securities and Exchange Commission (SEC) finally approved spot Bitcoin ETFs in January 2024, it could lead to a major demand shock for the crypto.
Saylor’s Prediction
Michael Saylor, the influential founder of MicroStrategy and a leading advocate for mainstream Bitcoin adoption, has raised a significant prediction regarding the cryptocurrency’s future. Saylor suggests a potential major demand shock for Bitcoin in the wake of a spot ETF approval anticipated in January 2024.
MicroStrategy, currently the largest institutional holder of Bitcoin, began accumulating the cryptocurrency in August 2020. With a substantial holding of 158,400 Bitcoin, the company’s perspective carries weight in the crypto community.
Saylor emphasizes the probable impact of the spot Bitcoin ETF approval, especially considering the likelihood of approval from the SEC.
Demand Shock & Supply Shock Dynamics
The approval of the spot ETF could trigger a demand shock for BTC, according to Saylor. Simultaneously, he anticipates a supply shock during the Bitcoin Halving event scheduled for the second quarter of 2024.
He is also optimistic about the potential of a bull run in 2024, correlating it with the impact of spot ETF approval, which he likens to the launch of S&P 500 index funds in the stock market. These combined factors could enhance the cryptocurrency’s value and scarcity.
BTC’s 2023 Journey
Despite challenges such as the legal issues surrounding Binance and the conviction of FTX’s Sam Bankman-Fried, Bitcoin exhibited resilience in 2023. After experiencing a $1.5 trillion depreciation the previous year, BTC’s market cap surged by 160%, a notable increase of $530 billion. Investor optimism regarding potential regulatory approval for the first Bitcoin-focused ETF played a pivotal role in this rapid rally.
As of now, Bitcoin’s price has increased by approximately 13% over the past month. The period leading up to the SEC’s January 10, 2024, deadline remains uncertain, with analysts estimating a high probability (98%) of approval. The ongoing engagement between financial giant, Blackrock and SEC officials hints at a favorable outcome.
BTC’s Possible Trajectory For 2024
Michael Saylor’s prediction of a demand shock for Bitcoin in 2024, fueled by the spot ETF approval, adds a layer of anticipation to the cryptocurrency landscape. With MicroStrategy’s substantial Bitcoin holdings and Saylor’s influence, the crypto community closely watches for developments leading up to the SEC’s decision on January 10, 2024. The convergence of regulatory approvals and market dynamics could reshape Bitcoin’s trajectory in the coming year.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
