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  • Crypto industry ‘destined’ to be BTC-focused due to regulators, says Michael Saylor

    Crypto industry ‘destined’ to be BTC-focused due to regulators, says Michael Saylor

    Key takeaways

    Crypto industry will be BTC-focused

    MicroStrategy co-founder Michael Saylor believes that the cryptocurrency industry is destined to become BTC-focused. He made this statement during an interview with Bloomberg.

    According to Saylor, Bitcoin is the only major cryptocurrency that has been excluded as a security by the US Securities and Exchange Commission (SEC). He pointed out that the regulatory agency doesn’t see a legitimate path forward for cryptocurrencies

    Saylor also added that cryptocurrency exchanges would fuel a price surge in Bitcoin in the near term. He stated that;

    “[The SEC’s] view is crypto exchanges should trade and hold pure digital commodities like Bitcoin, and so the entire industry is kind of destined to be rationalized down to a Bitcoin-focused industry with maybe a half a dozen to a dozen other proof of work tokens. The next logical step is for Bitcoin to 10x from here and then 10x again.”

    Bitcoin’s market dominance increases to 47%

    Bitcoin began the year with a market dominance of 40%. However, thanks to the rally experienced in the last few months, Bitcoin’s market dominance now stands above 47%. 

    Saylor believes that Bitcoin’s market dominance will reach 80% as more institutional funds will enter the market after confusion and anxiety over crypto disappear. 

    MicroStrategy has been buying more bitcoins despite the ongoing bear market. In March, the company purchased 6,455 bitcoins worth $150 million. Saylor’s company currently holds more than 138,900 bitcoins.

    The world’s leading cryptocurrency has been underperforming in recent days. At press time, the price of Bitcoin stands at $26,001, down by more than 3% in the last seven days.

    The broader cryptocurrency market has also seen its total cap increase since the start of the year. At the start of the year, the total cryptocurrency market stood above $700 billion. The total cryptocurrency market cap has since climbed past the $1 trillion mark.

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  • Bitcoin is rallying due to interest rate forecasts, says Coinjournal’s Dan Ashmore

    Bitcoin is rallying due to interest rate forecasts, says Coinjournal’s Dan Ashmore

    Key takeaways

    • Bitcoin is trading above the $28k level for the first time since June 2022.

    • Coinjournal’s Dan Ashmore believes that the interest rate forecasts are responsible for the ongoing rally by Bitcoin and other cryptocurrencies.

    • Many in the market still consider the recent banking crisis as the reason why investors are entering the crypto market.

    Interest rate forecasts behind Bitcoin’s rally

    Bitcoin, the world’s largest cryptocurrency by market cap, has been performing excellently over the past few weeks. At press time, the price of Bitcoin stands at $28,411, up by 13% over the last seven days.

    Many in the crypto space attribute the ongoing crypto rally to the collapse of a few banks, including Signature Bank, Silvergate Bank, and Silicon Valley Bank. 

    However, during an interview with CNBC, Coinjournal’s Dan Ashmore pointed out that Bitcoin’s rally has to do with the interest rate forecasts rather than the recent banking crisis.

    Regarding the ongoing rally, Ashmore said;

    “It is a reaction to the complete flip in interest rate forecasts in the wider economy. If you go back to before the Silicon Valley Bank collapse, there was an 83% probability that the interest rate would be increased by 100 basis points by the summer. Today, when we look at that, it is completely the opposite, and there is almost 100% of rate cuts.”

    He added that the crypto market is reacting to the probability that the Fed’s recent interest rate hikes are coming to an end.

    Interest rate cut is music to crypto investors

    With Bitcoin trading at $28k per coin, investors would be optimistic that prices could soar higher over the coming days and weeks.

    According to Ashmore, cryptocurrencies trade as risk-on assets, and an interest rate cut is music to the ears of crypto investors. 

    Ashmore also discussed the correlation between cryptocurrencies and tech stocks. According to the Coinjournal analyst, while many expect crypto to be an independent hedge, the assets still very much correlate with the stock market, especially tech stocks. He concluded that

    “The NASDAQ index rises, Bitcoin’s price also rises. The NASDAQ falls, and Bitcoin also falls a little more. The last couple of weeks have been interesting as Bitcoin has outperformed the NASDAQ. But it is a reflection of the fact that Bitcoin is trading in correlation with the interest rate forecasts.”

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