Key Points
Bitcoin (BTC) is now seen as an asset class that could potentially surpass major market-cap companies like Apple and precious metals such as gold. Recently, Bitcoin’s market capitalization reached USD 1 trillion, putting it on par with Alphabet (Google’s parent company) and Amazon.
Michael Saylor, the Executive Chairman and Co-founder of MicroStrategy, holds the view that Bitcoin’s structure can accommodate more capital and thus outperform top companies like Apple. He expressed this viewpoint during a recent interview with Katie Greifled on Bloomberg TV, where he said that the new US Spot BTC ETFs have created a pathway for capital to transition from traditional to digital markets.
MicroStrategy’s Bitcoin Holdings
As of the end of January, MicroStrategy held 190,000 BTC. The company’s unrealized profit exceeded +$4 billion after BTC surged close to $53K. When asked if his company would sell to take the profit, Saylor responded, “I’m going to be buying the top forever. Bitcoin is the exit strategy.”
According to Saylor, there is no need to sell MicroStrategy’s Bitcoin holdings because it’s the ultimate winner among asset classes. He pointed out that mega market cap companies like Apple or Microsoft lack the capital structure to hold $10 – $100 trillion in market cap. He identified Bitcoin’s only competitors as the S&P 500, gold, and real estate as a store of value.
However, Saylor believes that even these three cannot match Bitcoin’s technical superiority, making it the ultimate winner among asset classes. Therefore, he predicts that mass capital will eventually flow from these three assets to Bitcoin. Ark Invest’s Cathie Wood shares a similar bullish stance on Bitcoin vs Gold.
In 2023, Bitcoin outperformed the S&P 500 and Gold by +90%. The massive inflow into the new US spot BTC ETFs suggests that Bitcoin’s dominance isn’t likely to fade anytime soon.
Eric Balchunas, a senior Bloomberg ETF analyst, recently acknowledged that the bullish trajectory of the US Spot BTC ETF rivalled that of the Gold ETF. In less than a month, the new spot BTC ETFs reached $37 billion in assets compared to Gold’s $93 billion. This means that the spot BTC ETFs achieved about 40% of Gold ETF assets in under a month. While historical data doesn’t necessarily predict future outcomes, it will be interesting to see how these assets perform in the future.
As for Bitcoin’s price action, its short-term momentum has been range-bound since Valentine’s Day, consolidating recent gains within $52.4K – $51.2K. However, the higher timeframe structure remained bullish unless bears pushed the coin below the $50K psychological level.
The BTC/USDT pair on the 1-hour chart indicated that key bearish targets to watch out for were the range-low ($51.2K) and the liquidity pool located within $49.8K and $50.6K. On the other hand, potential short-term bullish targets were the range-high ($52.4K) and the recent high near $53K.
