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The executive chairman of Strategy, the largest publicly traded corporate holder of Bitcoin, Michael Saylor, stated that the catalyst for the growth of the leading cryptocurrency will be the development of the crypto lending market.
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According to Saylor, Bitcoin has already reached a bottom around $60,000, and the halt in its decline is attributed not to an overvaluation of the asset but to the exhaustion of selling pressure.
“The next catalyst will be the establishment of a Bitcoin-backed lending market. This will boost demand for the asset,” the businessman explained.
The end of a downturn typically occurs after the exit of forced sellers from the market, including miners with high debt burdens and weak financial positions, the entrepreneur elaborated.
To support his viewpoint, Saylor pointed to several factors: a steady influx of funds into spot Bitcoin ETFs, improved liquidity conditions amid expectations of lower interest rates on loans in the U.S., and the reallocation of capital by large investors into crypto assets.
He also declared that the advancement of quantum computing is an overestimated threat to Bitcoin. In his view, the risks are theoretical, their realization could take decades, and potential vulnerabilities can be easily addressed through updates to the technological infrastructure.
Previously, Michael Saylor stated that the traditional four-year Bitcoin price cycle is no longer effective. He attributed the changes in the cryptocurrency’s price to the influence of capital from large companies and the emergence of crypto loans.
