Bitcoin and cryptocurrency prices fluctuated wildly throughout May as panic gripped the market after the collapse of a major stablecoin, amid worrying suspicions over similar cryptocurrencies.
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Bitcoin price dropped to lowest levels not seen since late 2020 this month, fueling fears over the broader crypto market.
Now, Microstrategy’s CEO, Michael Saylor, has predicted that the bitcoin price will eventually go “in the millions” – what he calls the now-anticipated regulation as a result of the recent stablecoin terraUSD (UST) disappearing “good for the industry”.
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Saylor, who started buying bitcoin in the summer of 2020 when it was trading around $ 10,000, said, “There is no price target.” Yahoo Finance. “I hope we get bitcoin from the local top forever. And I hope bitcoin goes into the millions. So we’re very patient. We think this is the future of money.”
Microstrategy, a business intelligence software company that has become a bitcoin acquisition tool, has made nearly 130,000 purchases over the past two years, averaging just over $30,000. Bitcoin price soared to almost $70,000 late last year.
However, the bitcoin price and the broader crypto market have been hit hard by a downturn that has also weighed on stock markets, triggered by the US Federal Reserve’s plans to raise interest rates and shrink its stretched $9 trillion balance sheet.
The crypto market was more affected by the collapse of stablecoin terraUSD and support coin luna. The stablecoin market is now poised for regulatory pressure, which Saylor expects to be something positive for the emerging crypto economy.
“This will be good for the industry,” he said. “Over time, as people become more educated and more comfortable, I think we’ll be freed from that disadvantage.”
“I agree with Saylor as an event of this magnitude forces governments to act quickly by providing regulatory clarity,” Marcus Sotiriou, an analyst at UK-based digital asset broker GlobalBlock, said in emailed comments, adding that the IHR collapse would “accelerate”. Stablecoins and security tokens regulations that will have a positive impact on the industry.”
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Earlier this month, US Treasury secretary Janet Yellen called for the creation of “urgent” stablecoin regulation this year as a result of the UST’s meltdown.
Saylor continues to expect institutional investors to flock to bitcoin, arguing that it is “superior” to other forms of money. Bitcoin’s dominance, a measure of Bitcoin’s value compared to the broader crypto market, has increased in recent months as traders flee from riskier assets.
“Once people understand why bitcoin is above all else, institutions will come with huge amounts of money and we won’t have to struggle with this big explanation of why we’re different from 19,000 crypto tokens,” Saylor said.