Michael Saylor: "Bitcoin is returning to a bull market"

• The issuance of bank credit on bitcoin would be the biggest bullish foundation in the medium term.
• In the short term, bitcoin may continue to experience high volatility due to macroeconomic tensions.

<>, stated Michael Saylor, founder of Strategy, referring to the current state of bitcoin (BTC).

Saylor, leader of the public company with the largest amount of BTC in its possession, highlights that if one looks at the simple moving average of 200 weeks, the market bounced off that mark about three months ago.

The following chart provided by TradingView allows us to observe what the entrepreneur commented on in a recent conference:
Chart of bitcoin price and simple moving average of 200 weeks. Source: TradingView.

Saylor acknowledged that the market has faced recent obstacles, which he described as <<restrictive trade policy, restrictive foreign policy, and restrictive monetary policy>>.

He added that the bubble of artificial intelligence and the demand for capital for its development have also acted as headwinds.

Since <>, Saylor explained that <<anything that is bad for capital markets, anything that decreases risk and is not good for capital, is twice or three times worse for bitcoin>>.

However, the executive expressed optimism regarding the drivers that will push the price in the short and medium term. <>, he asserted.

The executive explained that, as banks issue credit backed by bitcoin, the impact will be significant: <<Every $10 billion of credit is the supply for a year. So if you create $100 billion of credit in a $1 trillion asset class, it is enormously bullish; it pushes the price forward>>.

Saylor warned that banks will not grant these credits until they hold or collateralize bitcoin. <<As banks hold bitcoin, those credit networks form, and that is a very bullish fundamental in the next 12 to 24 months>>, he projected.

Another factor that Saylor considers positive for bitcoin is the disruption generated by artificial intelligence. He argued that automation will demonetize labor and cause the collapse of prices of physical goods. <<If you are an investor, you want to buy something that a robot cannot do>>, he said.

In this context, he defined the digital currency as <<a piece of scarce and desirable property in cyberspace, as robots cannot create more bitcoin; they can definitely create more of anything tangible in the physical world>>.

Regarding the regulatory landscape**, Saylor dismissed the idea that the lack of a general legal framework is a problem**. He criticized extensive frameworks, pointing out that <<a 630-page Clarity Act is 600 pages of restrictions; you really don’t want 600 pages of restrictions, you want a statement of rights that fits on a single page>>.

Instead, he celebrated recent decisions such as the Treasury rules for stablecoins and the SEC's openness to tokenized securities (both events were timely reported by CriptoNoticias), stating that <<the best thing for the industry is for regulators to issue positive rules, and then you simply go, build these products, and sell them>>.

During his speech, Saylor also delved into the development of digital credit based on bitcoin, which he described as <>.

He highlighted Strategy's product, STRC, which currently pays a yield of 12% and is over-collateralized in bitcoin. <>, he stated. The company aims for this instrument to pay daily dividends to adapt to a constantly trading environment.

<<The idea behind the daily payment is that we are moving towards a world where everything is traded 365 days a year, at any minute and anywhere, so why not create a fixed-income instrument that pays you every day?>>, he questioned.

Finally, when asked about the future of developing new financial products, Saylor advised looking for assets that offer unique and unrepeatable characteristics. He mentioned that the key is to create <<a magical product or service based on digital intelligence, digital communications, digital assets>>.

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