This Crypto Insider Says Bitcoin Has Bottomed and Will Retake $60k, But When?
MicroStrategy’s chairman and co-founder Michael Saylor believes that the price of Bitcoin has found a stable bottom of around $20,000. From here, he expects the flagship crypt to regain its previous peak price levels of around $60,000 over the next four years.
Saylor made the comment during an interview with MarketWatch’s first “Best New Ideas in Money Festival.” Saylor told MarketWatch Editor-in-Chief Mark DeCambre that he has been looking at Bitcoin’s four-year simple moving average for a potential bottom. This calculation is currently around $20,000.
“It has touched it a few times. I think this is stable. The next logical stop for bitcoin is to replace gold as a non-sovereign store of value,” Saylor said.
Meanwhile, the Bitcoin evangelist also revealed during the interview that MicroStrategy is building a Bitcoin Lightning Network wallet. The wallet is aimed at serving enterprises, which are already MicroStrategy’s main customer base.
The Bitcoin L2-compatible wallet will facilitate business use cases such as wrapping their websites in “a layer of digital energy to protect it from cyber security threats” and paying employees with Bitcoin.
This isn’t the first time Saylor has expressed strongly bullish sentiment about Bitcoin. Earlier this year, the billionaire noted that Bitcoin is the only scarcity in the world as reported by Business Insider. The comment completely smacks of gold as Saylor claims that the precious metal can be made infinitely.
“I can create more real estate in New York City. I can create more cars. I can create more luxury watches. I can create more gold. I can create more shares of a stock. I can create more bonds,” he said.
Saylor is preparing for a Bitcoin-dominated future
Saylor ultimately expects Bitcoin to trade at around $500,000 per Bitcoin once its market cap surpasses the roughly $11 trillion market cap of gold. This is one of the reasons he has cited in MicroStrategy’s ongoing addition to the balance sheet.
Currently, MicroStrategy is one of the largest publicly traded holders of Bitcoin. In a disclosure this month, Saylor revealed that MicroStrategy added an additional 301 Bitcoins — purchased for about $6 million between August 2 and September 19 — to its balance sheet. This brings the enterprise software company’s Bitcoin holdings to more than 130,000 BTC.
Bloomberg reports that these bets on Bitcoin have cost MicroStrategy as much as $1 billion in losses so far. Further losses are expected if the company continues to borrow to finance the purchase of the volatile assets, especially as interest rates rise in the report.
