There have been a lot of hype about Bitcoin price hitting extreme highs in the near future, and Michael Saylor is one of the many entertaining this idea.
Coverage:
Michael Saylor’s Piece Of Mind
Some may take Saylor’s words with a big pinch of salt, but he has reasonable points to back his claims that Bitcoin could soon reach a new ATH of $5 million. However, this won’t happen without strong facilitating by a number of factors.
In a recent conversation on an X spaces, Michael Saylor singled out 3 strong factors that could take Bitcoin to the multi-million dollar sphere. It’s worth noting that the Bitcoin community has already been talking about these possibilities.
Approval Of A Bitcoin Spot ETF
The US SEC has recently been swamped with a good number of Bitcoin spot ETF applications. These applications are still in review. The regulatory body has until sometime in March 2024 to give the ultimate verdict.
Numerous experts and Bitcoin analysts have expressed growing optimism that a spot ETF will be approved soon. Such a development would mean more funds flowing into the Bitcoin industry, increasing demand for BTC, and ultimately sending the price soaring high.
Banks Adopting Bitcoin As Collateral For Loans
Banks getting their hands into the Bitcoin market would be an interesting scenario. However, this could happen sooner than expected. While banks have been largely anti-Bitcoin for years, a lot of them have recently seen the light and have began embracing investing in Bitcoin ventures.
According to Saylor, banks could get involved in the Bitcoin market by putting in place frameworks to support facilitating Bitcoin custody and accepting the top coin as collateral. This would get more people, and even institutional funds, interested in BTC and affect its price upwards.
Approval Of Fair Value Accounting For Bitcoin Holding Companies
For a long time, companies that have acquired Bitcoin and other digital assets haven’t been including it in their balance sheets. This was mainly due to legal issues related to such actions. However, that’s about to change because the FASB (Financial Accounting Standards Board) approved that accounting process just recently.
The notion of big companies like Tesla putting their Bitcoin holdings in their balance sheet is an obvious wake up call to everyone else to start looking into Bitcoin as a viable investment option. With this, demand is affected, along with price.
As such, Michael Saylor’s vision of a $5 million Bitcoin doesn’t sound far-fetched if these facts are considered. Still, time will tell when and how this development will take shape.
