MicroStrategy President and Co-Founder Michael Saylor believes Bitcoin price has found a stable bottom at around $20,000. From there, he expects the flagship crypto to return to its former peak price levels of around $60,000 within the next four years.
Saylor made the comment during an interview with MarketWatch’s inaugural “Best New Ideas in Money Festival.” Saylor told MarketWatch Editor Mark DeCambre that he is watching Bitcoin’s four-year simple moving average for a potential bottom. This metric currently sits at around $20,000.
“He touched that a few times. I think it’s stable. The next logical stop for bitcoin is to replace gold as a non-sovereign asset of value,” Saylor said.
Meanwhile, the Bitcoin evangelist also revealed during the interview that MicroStrategy is building a Bitcoin Lightning Network wallet. The portfolio is aimed at enterprises, which are already MicroStrategy’s main customer base.
The Bitcoin L2-enabled wallet will facilitate enterprise use cases such as wrapping their websites in “a layer of digital energy to protect it from cybersecurity threats” and paying employees with Bitcoin.
This is not the first time Saylor has expressed strongly bullish sentiments for Bitcoin. Earlier this year, the billionaire pointed out that Bitcoin is the only shortage in the world, as reported by Business Insider. The comment completely snubs gold as Saylor argues that the precious metal can be created indefinitely.
“I can create more real estate in New York. I can create more cars. I can create more luxury watches. I can create more gold. I can create more stocks. I can create more bonds,” he said.
Saylor prepares for a Bitcoin-dominated future
Saylor ultimately expects Bitcoin to trade at around $500,000 per bitcoin when its market cap surpassed gold’s roughly $11 trillion market cap. It’s one of the reasons he cited for the continued addition of MicroStrategy to his balance sheet.
Currently, MicroStrategy is one of the largest publicly traded bitcoin holders. In a disclosure this month, Saylor revealed that MicroStrategy had added another 301 Bitcoins — purchased for around $6 million between August 2 and September 19 — to its balance sheet. This brings the enterprise software company’s Bitcoin holdings to over 130,000 BTC.
Bloomberg reports that these bitcoin bets have cost MicroStrategy up to $1 billion so far. Further losses are expected if the company continues to borrow to finance its purchase of volatile assets, especially as interest rates rise, according to the report.