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- According to MicroStrategy’s Michael Saylor, institutional investors are realizing regulators are not against the adoption of Bitcoin as a commodity.
- Bitcoin dominance has risen to a two-year high of around 49 percent following the altcoin regulatory crackdown in the United States.
Less arguably, the Bitcoin market has significantly benefited from the ongoing crypto regulatory scrutiny in the United States led by the Securities and Exchange Commission (SEC). Bitcoin has not been considered a security in the ongoing litigations filed by SEC Chair Gary Gensler against Binance and Coinbase Global.
In any case, the current SEC commissioners led by Gensler approved a Bitcoin Futures ETF filed by ProShares back in 2021. Additionally, the Biden administration has shown interest in taxing Bitcoin miners as a legitimate business, although the 30 percent push failed with the bipartisan agreement on the debt ceiling debate.
MicroStrategy’s Michael Saylor on Bitcoin Adoption
Speaking in an interview at Bloomberg Crypto, MicroStrategy’s executive chairman, and president Michael Saylor noted that Bitcoin’s dominance is ripe to double at the expense of other digital assets. According to Saylor, regulators in the United States have shown less interest in stablecoins and many other crypto assets, which could mean more adoption of Bitcoin in the near future. Precisely, Saylor suggested that Bitcoin’s market could significantly eat away at the stablecoins industry that will be replaced by CBDC.
Although the crypto market is currently in fear caused by the regulatory crackdown, Saylor noted that institutional investors will feel more confident with proper policies in place to avoid a catastrophic crisis like the FTX and Alameda Research one. Consequently, Saylor insisted that institutional funds will proliferate the Bitcoin market, which could yield a 10X from current prices. Saylor noted.
Regulatory clarity is going to drive Bitcoin adoption by eliminating the confusion & anxiety that has been holding back institutional investors. Bitcoin dominance will continue to grow as the Crypto industry rationalizes around $BTC and goes mainstream.
Nonetheless, Saylor noted that some proof-of-work (PoW) tokens like Litecoin (LTC), and Dogecoin (DOGE) are likely to survive the regulatory scrutiny in the United States alongside Bitcoin. As a result, the tech investor expects exchanges to double down on Bitcoin investment in order to secure their future growth prospects.
Meanwhile, Saylor noted that exchanges should help investors acquire Bitcoin and store the asset in a non-custodial wallet. Moreover, investors are more confident storing their assets off centralized exchanges in fear of asset freeze or rug pulls.
📉 #Bitcoin's exchange supply has now fallen to its lowest level since February, 2018. Traders continue moving $BTC to self custody during the uncertainty surrounding #Binance & #Coinbase. As long as these #SEC lawsuits loom, this trend should continue. https://t.co/CBOxJ8oA07 pic.twitter.com/c7MQyMswgp
— Santiment (@santimentfeed) June 14, 2023
Market Outlook
The crypto market is currently facing uncertainty as the fate of digital asset firms in the United States gets deciphered in courts. Nonetheless, other global jurisdictions including the European market, Hong Kong, Middle East countries, and Singapore, among many others have already formulated friendly crypto policies. As a result, the crypto industry is expected to stand resilient to regulatory scrutiny in the United States until next year’s halving, which often triggers the larger bull market.
