Michael Saylor predicts a bull market in 2024, making Bitcoin ETF the first major development on Wall Street in 30 years.
In a recent Bloomberg interview, MicroStrategy co-founder and chairman Michael Saylor shared an optimistic outlook for Bitcoin in 2024, which largely depends on the emergence of a spot Bitcoin ETF. Seiler emphasized the historical significance of this development, calling it “the biggest development on Wall Street in 30 years,” paralleling the invention of the S&P 500.
2024: Potential Bitcoin Bull Market Year
Saylor’s insights signal a major shift in Bitcoin market dynamics. The Bitcoin market, currently dominated by ‘holders’ and traditional cryptocurrency investors, could potentially see a transformative influx of mainstream and institutional investors once spot ETF approval is announced in January.
According to Saylor, these influxes are poised to trigger a significant demand shock. With only 900 bitcoins available to organic sellers each day and a decline expected to fall to 40 bitcoins per day, Saylor predicts a corresponding supply shock. He argues that this unique combination sets the stage for a massive bull market in 2024.
MicroStrategy’s Strategy: A Unique Approach to Cryptocurrency
MicroStrategy, with its unique operational approach, is ready to capitalize on this potential market shift. Saylor describes the company as a nimble entity similar to an airline in its efficiency, as opposed to the shipping-line nature of spot ETFs. MicroStrategy aims to grow Bitcoin holdings by focusing on long-term investor value and Bitcoin value per share through a variety of methods, including P&L operations and capital markets activities.
Impact of FASB’s new rules on cryptocurrency accounting
An important development that Saylor highlights is the Financial Accounting Standards Board’s (FASB) new rules for accounting for cryptocurrencies. The rules, which are expected to be officially implemented in 2025, will allow companies to reflect the volatility of their cryptocurrency holdings and identify peaks and troughs through fair value accounting. Saylor sees this as a groundbreaking transformation of corporate balance sheets into dynamic assets.