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

MicroStrategy CEO Michael Saylor believes regulatory and enforcement action in the United States will ultimately boost BTC dominance.

In a Bloomberg interview , the CEO stated that the recent enforcement actions by the U.S. Security and Exchange Commission against top crypto exchanges would favor Bitcoin.

Bitcoin is the only cryptocurrency exempted from being labeled a security by SEC Chairman Gary Gensler. It still retains its spot as the number one asset in the crypto market and is perceived as a reliable store of value by many investors. 

Saylor Talks Up BTC’s Potentials

According to Michael Saylor, US regulators do not believe in the legitimacy of cryptocurrencies and do not hold stablecoins or crypto-based derivatives in high regard. 

Saylor believes that crypto exchanges are the catalyst behind a significant surge. He stated the SEC’s view is that exchanges should trade and hold pure digital commodities and assets such as Bitcoin.

He believes these sentiments will create a bitcoin-focused industry with around half a dozen other Proof-of-Work tokens, streamlining the crypto market. The CEO predicts a price increase for Bitcoin and expects its adoption to increase exponentially. 

Notably, the Bitcoin (BTC) market share (dominance) increased from 40% to 48% in 2023 as regulatory pressure mounts on other crypto projects. Saylor is bullish on Bitcoin projects its dominance to increase to 80% percent when institutional money flows into crypto.

Analysts Criticize Pro-Bitcoin’s Stance

However, not all members of the crypto community conform to Michael Saylor’s sentiments. 

According to Anthony Sassano, host of Daily Gwei, it is embarrassing to see how many bitcoiners derive pleasure from the fact that the SEC is after Coinbase. He stated that no other company in the industry had done more for Bitcoin adoption than Coinbase.

Also, Senior Macro Strategist at Bloomberg Intelligence, Mike McGlone, stated in May that cryptos, in general, may be the next asset to crash. 

He noted that 2023 is a year of rebound for most assets that fell in 2022. However, another crash might occur in crypto, similar to the current occurrence in the commodities market and traditional banking systems. 

Meanwhile, the current regulatory pressure is currently straining the crypto market structure. The Fear Index in the market is high, with most cryptocurrencies declining in the market.

Top crypto exchanges Coinbase and Binance are under intense regulator pressure from the US SEC for the sale and possession of unregistered securities.

However, BTC is not under any form of regulatory pressure and is regarded as a reliable store of value by most investors. As such, the asset is currently trading at the $25,900 price level as it seeks to recover in a volatile market.

Notably, the outcome of the Binance and Coinbase case will likely prove critical to cryptocurrencies and their operations moving forward.