As per Michael Saylor, co-founder of MicroStrategy, regulatory actions against digital currency firms by American regulators may lead to the formation of a market for Bitcoin that will boost the price above $250,000.
The Bitcoin bull predicted that recent Securities and Exchange Commission enforcement measures will eventually work in Bitcoin’s favour in a June 13 interview with Bloomberg. Bitcoin is the only cryptocurrency that Gary Gensler, the chair of the SEC, has decided is not a security.
The U.S. regulatory authorities “don’t see an authentic road forward for virtual currencies,” Saylor continued, stating that “they don’t have any love” for stablecoins, crypto-tokens, or cryptocurrency-based derivatives.
Saylor projected that bitcoin exchanges will be the cause of the significant price rice:
The whole sector is going to be rationalised down to a Bitcoin-focused economy with perhaps six to twelve other proof of work tokens, according to [The SEC’s] opinion that cryptocurrency exchanges should trade and hold pure digital commodities like Bitcoin.
After here, Bitcoin should logically 10x, and then 10x again, he asserted.
The SEC’s regulatory actions and the designation of 68 digital assets as securities by the agency—none of which are proof-of-work—may be partly responsible for the growth in Bitcoin’s market share from 40% to 48% in 2023, according to Saylor.
Saylor projects that this authority will increase to 80% after “big institutional capital” reaches the bitcoin market and the “confusion and worry” around it disappears.
Saylor and other Bitcoin supporters have, nonetheless, come under intense criticism.
The Daily Gwei presenter Anthony Sassano lately called out “Bitcoiners” who support the SEC suing Coinbase and other exchanges for listing tokens that the regulatory organisation views as illegal securities.
Numerous individuals and organisations, including the crew behind the Ethereum-based wallet MetaMask, agree that a “multichain future” is unavoidable because various blockchains serve various functions.
A “deflationary bust” is affecting the commodities market and bank deposits, according to Mike McGlone, a senior macro analyst.. Cryptocurrency may be the next domino to fall in this chain of events.
According to economist Lyn Alden, after the U.S. fixes its debt crisis, a sizable amount of liquidity will be removed out of markets, and there is “considerable crisis ahead” for Bitcoin in the second half of 2023:
At that moment, the Fed and the Treasury will both be draining the system of liquidity, which would make BTC and other risky assets particularly vulnerable.