According to Michael Saylor, Executive Chairman of MicroStrategy, the stricter crackdown on the crypto market by the US authorities should have a positive impact on Bitcoin.
• After the crypto crash: Many voices are calling for stricter regulation for the crypto market
• US regulators have further tightened the pace
• MicroStrategy co-founder Michael Saylor: Bitcoin dominance should increase significantly
US authorities tighten pace
At least since the collapse of the FTX crypto exchange, the US Securities and Exchange Commission has been under pressure to introduce stricter regulation for the crypto market. SEC boss Gary Gensler now seems to have made this his task and the US regulators have recently tightened their pace further. Earlier this month, the SEC filed a lawsuit against crypto exchange Binance and competitor Coinbase. The allegation: violations of securities laws.
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As Markets Insider reports, the SEC considers $120 billion worth of tokens to be securities – since they weren’t registered, they shouldn’t have been offered by exchanges. In its lawsuits, the regulator put 19 tokens to the test – trading platforms such as Robinhood and eToro removed some of these tokens from their offer in response.
Michael Saylor: Bitcoin dominance will increase
In a recent interview with Bloomberg Crypto, MicroStrategy co-founder and executive chairman Michael Saylor said the US crackdown could be a godsend for the oldest and largest cryptocurrency by market cap, bitcoin.
The measures taken by the US authorities are likely to be received by the industry in such a way that Bitcoin is not considered a security and therefore does not fall under the measures. “I mean, their view is that crypto exchanges should trade and hold purely digital commodities like bitcoin,” Saylor said of the SEC. “And so it’s sort of destined for the entire industry to be streamlined into a bitcoin-focused industry, with maybe a half-dozen to a dozen other proof-of-work tokens.”
“Now I think the public is starting to understand that bitcoin is the next bitcoin,” Saylor said in an interview. “The next logical step is for bitcoin to increase to 10x from here and then 10x again.”
He believes that under these circumstances, Bitcoin will almost double its market share. According to CoinMarketCap, Bitcoin’s share of the total market capitalization of the crypto industry has increased from 40 to 48 percent this year alone, Saylor explains. With authorities now targeting other tokens, he believes Bitcoin’s dominance will grow to 80 percent.
Saylor known as the bitcoin bull
Michael Saylor’s statements are not surprising – he is known as the Bitcoin bull. According to Markets Insider, he said as recently as May that Bitcoin had bottomed and was at the start of a significant bull run.
And he has also linked his company MicroStrategy to Bitcoin in an unprecedented way. Again and again he invested the company’s “excess” cash in the cyber currency. In the first quarter of 2023, the company bought around 7,500 bitcoins for $179 million, so MicroStrategy held 140,000 bitcoins as of March 31, which cost the company a total of around $4.2 billion.
In addition to the restrictions imposed by regulators on other cryptocurrencies, Bitcoin could also get a tailwind from the next halving event in the coming year. Expected to be in April 2024, this will halve the amount of coins distributed per block created to prevent excessive inflation and ultimately limit the total supply of the token to 21 million units.
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