This Crypto Insider Says Bitcoin Has Bottomed and Will Retake $60k, But When?
MicroStrategy’s chairman and co-founder Michael Saylor believes the price of Bitcoin has found a stable bottom at around $20,000. From here, he expects the flagship crypto to retake its former peak price levels of around $60,000 within the next four years.
Saylor made the comment during an interview with MarketWatch’s inaugural ‘Best New Ideas in Money Festival.’ Saylor told MarketWatch’s editor-in-chief Mark DeCambre that he has been watching Bitcoin’s simple moving average over four years for a potential bottom. This metric currently stands at around $20,000.
“It has touched that 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 asset,” Saylor said.
Meanwhile, the Bitcoin evangelist also disclosed during the interview that MicroStrategy is building a Bitcoin Lightning Network wallet. The wallet is targeted at serving enterprises, which are already MicroStrategy’s main customer base.
The Bitcoin L2 compatible wallet will facilitate enterprise use cases such as wrapping their websites in “a layer of digital energy to protect it from cybersecurity threats” and paying employees with Bitcoin.
This is not the first time Saylor has expressed strongly bullish sentiments for Bitcoin. Earlier this year, the billionaire remarked that Bitcoin is the only scarcity in the world as reported by Business Insider. The comment snubs gold completely as Saylor maintains that the precious metal can be created indefinitely.
“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 bond,” he said.
Saylor preparing for a Bitcoin-dominated future
Saylor ultimately expects Bitcoin to trade at around $500,000 per Bitcoin when its market capitalization surpassed the around $11 trillion market cap of gold. This is one reason he has cited in MicroStrategy’s ongoing addition to its balance sheet.
At present, MicroStrategy is one of the biggest publicly traded holders of Bitcoin. In a disclosure this month, Saylor revealed that MicroStrategy added another 301 Bitcoins – bought for about $6 million between August 2 and September 19 – to its balance sheet. This brings the enterprise softwares company’s Bitcoin holdings to more than 130,000 BTC.
MicroStrategy has purchased an additional 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin. As of 9/19/22 @MicroStrategy holds ~130,000 bitcoins acquired for ~$3.98 billion at an average price of ~$30,639 per bitcoin.https://t.co/5kYW98ij4I— Michael Saylor⚡️ (@saylor) September 20, 2022
Bloomberg reports that these bets on Bitcoin have so far cost MicroStrategy losses of as much as $1 billion. Further losses are expected if the company continues borrowing to fund its purchase of the volatile assets especially as interest rates are getting hiked the report opined.