Asked whether his company would sell to take the profit, Saylor stated, that he is “going to be buying the top forever. Bitcoin is the exit strategy.”
Bitcoin (BTC) has emerged as an asset class ripe enough to outcompete major market-cap companies like Apple and precious metals like Gold. Bitcoin recently reclaimed USD 1 trillion in market capitalization, which tipped it to share equal status with Alphabet (Google’s parent company) and Amazon.
However, MicroStrategy’s Executive Chairman and Co-founder, Michael Saylor, believes that Bitcoin’s structure can accommodate more capital and outpace top companies like Apple. During a recent interview with Katie Greifled on Bloomberg TV, Saylor maintained that the new US Spot BTC ETFs opened a gateway for capital to flow from traditional to digital markets.
MicroStrategy Executive Chair Michael Saylor says the approval of spot Bitcoin ETFs is “a rising tide that is going to lift all boats” https://t.co/0X0Pcz9N8S pic.twitter.com/jA1KxQEDAW
— Bloomberg TV (@BloombergTV) February 20, 2024
At the end of January, the report revealed that MicroStrategy held 190,000 BTC, which meant that the company’s unrealized profit topped +$4 billion after BTC surged close to $53K. Asked whether his company would sell to take the profit, Saylor stated:
“I’m going to be buying the top forever. Bitcoin is the exit strategy.”
Saylor emphasized that there isn’t any need to sell MicroStrategy’s Bitcoin holdings because it’s the ultimate asset class winner. Citing the lack of capital structure to hold $10 – $100 trillion in market cap amongst mega market cap companies like Apple or Microsoft, he underscored Bitcoin’s only competitors are the S&P 500, gold, and real estate as a store of value.
However, even these three don’t stand Bitcoin’s technical superiority, making it the ultimate asset class winner. As such, Saylor believes mass capital will eventually flow from these three assets to Bitcoin. Ark Invest’s Cathie Wood holds a similar bullish stance on Bitcoin vs Gold.
Bitcoin vs Gold
In 2023, Bitcoin outperformed the S&P 500 and Gold by +90%. The onslaught by Bitcoin isn’t waning any time soon if the massive inflow into the new US spot BTC ETFs continues.
A senior Bloomberg ETF analyst, Eric Balchunas, recently acknowledged that the US Spot BTC ETF bullish trajectory rivaled Gold ETF. In less than a month, the new spot BTC ETFs has hit $37 billion in assets against Gold’s $93 billion. Put differently, the spot BTC ETFs achieved about 40% of Gold ETF assets in under a month. Although historical data doesn’t necessarily translate to future predictions, how these assets will play out remains to be seen.
On the price action front, Bitcoin’s short-term momentum has been range-bound since Valentine’s Day, consolidating recent gains within $52.4K – $51.2K. Nevertheless, the higher timeframe structure was still bullish unless bears slumped the coin below the $50K psychological level.
Photo: TradingView
In particular, the BTC/USDT pair on the 1-hour chart showed that key bearish targets to watch out for were the range-low ($51.2K) and the liquidity pool located within $49.8K and $50.6K. On the other hand, short-term possible bullish targets were the range-high ($52.4K) and the recent high near $53K.
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