US Regulators' Enforcement Action Against Cryptocurrency Firms May Cause Bitcoin
MicroStrategy co-founder Michael Saylor said a product focused on the industry would cost more than $250,000. In a June 13 interview with Bloomberg, the bitcoin bull explained that the SEC's recent enforcement action will ultimately benefit bitcoin the only security ex included by SEC Chairman Gary Gensler . cryptocurrency.
Saylor added that US regulators “do not see a legitimate path forward” for cryptocurrencies, adding that “they don't like” stablecoins, crypto tokens or crypto-based derivatives. According to Saylor, cryptocurrency exchanges will be the catalyst behind the massive pri ce surge: "[The SEC] view is that cryptocurrency exchanges should trade and hold purely digital commodities like bitcoin, so the industry as a whole is bound to be rationalized as a bitcoin-centric industry with maybe six to a dozen Other proof-of- work tokens.”
“The next logical step is for Bitcoin to go up 10x from here, and then 10x,” he claimed. Saylor noted that Bitcoin's market share will increase from 40% to 48% in 2023, which may be due in part to the SEC's enforcement activities and the agency's labeling of 68 cryptocurrencies as securities none of which are proof-of-work . In the future, Saylor sees this dominance increasing to 80% as “huge institutional money” will flow into cryptocurrencies after the “confusion and anxiety " about cryptocurrencies dissipate.
However, Saylor and other Bitcoin-centric advocates have faced their fair share of criticism. Anthony Sassano, host of The Daily Gwei, recently called out "Bitcoin enthusiasts" who were delighted to see the SEC file lawsuits against Coinbase and other exchanges that listed the Tokens considered by institutions to be unregistered securities. The team behind the Ethereum-based wallet MetaMask and many others also believe that a "multi-chain future" is inevitable, as different blockchains serve different purposes.
Mike McGlone, senior macro strategist at Bloomberg Intelligence, explained in early May that a “deflationary bust” is affecting commodity markets and bank deposits and cryptocurrencies could be the next domino to fall. In January, economist Lyn Alden told that Bitcoin is “in considerable danger” in the second half of 2023, and said that when the US resolves its debt problems, a lot of liquidity will be withdrawn from the market:
“By then, both the Treasury and the Fed will be sucking liquidity out of the system, which will create a period of vulnerability for risk assets in general, including BTC.”
