The software firm’s cofounder ascribes the new bull market to bitcoin’s halving, increased adoption of the coin, and a regulatory clampdown on the sector that should help bitcoin

MicroStrategy’s Michael Saylor says bitcoin’s present rally is actually the beginning of a new bull run.

The software firm’s cofounder ascribes the new bull market to bitcoin’s halving, increased adoption of the coin, and a regulatory clampdown on the sector that should help bitcoin.

Investor and developer interest will start shifting from other blockchains, Saylor states, and into Bitcoin’s network as regulation starts to remove rivals such as Ethereum. Earlier in 2023, US SEC chairman Gary Gensler stated that everything except bitcoin comes under securities laws.

The Financial Accounting Standards Board also recently put forward guidance on crypto accounting and reporting, Saylor states, which is a considerable landmark as well. It provides firms that hold crypto on their balance sheets, like MicroStrategy, more clarity and transparency for their shareholders, which could lead to more mainstream adoption.

The Financial Accounting Standards Board initiative to adopt fair value accounting is a very promising development, Saylor stated.

This, along with Bitcoin’s halving and a migration of Ordinals inscriptions activity on its network, are bullish as well.

Ordinals is a protocol that extends the blockchain’s use case and recently helped lead a new record for daily Bitcoin transactions as well. Bitcoin’s halving, a technical event that takes place nearly every four years, is roughly scheduled for April 2024. This could hike the price of the crypto by boosting bitcoin’s scarcity as the halving can lessen the number of new bitcoins released.

Even though the space is going through “growing pains,” Saylor states there are still a lot of bullish factors for bitcoin.

Nearly all of the bad leverage has been removed. Everyone in the business of shorting, rehypothecating, and loaning bitcoin — they have all (gone) bankrupt. The rest of the exchanges where you can short it are under a huge amount of regulatory constraint, he said.

He further said: I think bitcoin has found the bottom. I think the leverage is out of it. I think we are on a bull run.