KEY POINTS
- Michael Saylor previously predicted that Bitcoin would trade at $5M
- He enumerated three catalysts that would make this happen
- These catalysts are now close to being ticked off on his list
Is Bitcoin on its way to trading at $5 million and replacing gold?
Michael Saylor, executive chairman of MicroStrategy, the largest corporate holder of Bitcoin, previously enumerated three conditions or catalysts that will push the crypto asset to trade at $5 million.
In one of his past appearances on X Spaces, Saylor said, "[Bitcoin] is going to grind up to replace gold. It will go to $500,000 a coin regardless. But there are three things that are massive catalysts to cause an acceleration. Those three things don't take us to $500,000, they take us to $5 million a coin."
The MicroStrategy co-founder then shared the three catalysts that, according to him, would propel the world's oldest crypto asset to trade at $5 million.
"A spot ETF where someone can go ahead and buy $100 million in Bitcoin by an ETF security, I think that's one. Two is: Your bank will custody it for you and lend against it. And three is: I can mark it up or mark it down in my balance sheet based on fair value," Saylor said.
MICHAEL SAYLOR: 3 catalysts will take #Bitcoin to $5 million:
— Bitcoin Archive (@BTC_Archive) September 8, 2023
1. Spot ETF approval - inevitable.
2. Banks custody and lend against Bitcoin as collateral - coming soon.
3. Fair value accounting rules from FASB - ✅ Approved this week.
h/t: @thepowerfulHRV 🙌 pic.twitter.com/N8MSR4w56L
It is worth noting that the Financial Accounting Standards Board (FASB) officially adopted the fair value accounting for cryptocurrencies on Wednesday.
This means Bitcoin, along with cryptocurrencies in general, will be assessed at fair value under the new FASB rules that are set to take effect for fiscal years after Dec. 15, 2024.
That's one catalyst ticked on Saylor's list.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) is ironing out technical details on the spot Bitcoin exchange-traded fund prospectus of hopeful issuers, hinting at the regulator's positive stance on finally allowing the highly-awaited crypto investment vehicle to launch in the country.
The major Wall Street regulator is set to make its final decision on the applications on Jan. 10, 2024, teasing that a potential spot Bitcoin ETF product will be available in the U.S. in early 2024.
That is another item on the MicroStrategy executive chairman's list of catalysts.
As for the remaining condition, banking giants are now starting to show interest in the cryptocurrency industry, particularly in the custody game with Deutsche Bank recently collaborating with the fintech platform Taurus to offer Bitcoin and other crypto assets custody.
Moreover, the Cheyenne, Wyoming-based company Custodia Bank, launched Bitcoin custody in November which, according to its founder and CEO Caitlin Long, is "a genuinely new Bitcoin custody service to the U.S. market, both in its technology architecture and its legal and regulatory benefits."
Bitcoin, the world's largest crypto asset by market capitalization, was trading in the green zone at $42,804.94 as of 5:17 a.m. ET on Thursday with a 24-hour trading volume up by 4.79% at $24,888,670,345.
Bitcoin's latest price action represents a 4.13% gain in the past 24 hours and a 1.% loss over the last seven days.
Data from CoinMarketCap showed that Bitcoin's circulating supply stands at 19,569,550 BTC with its value continuously spiking by 4.23% at a $838,492,786,787 market cap.
