Bitcoin is poised for a resurgence as the year draws to a close, fueled by an increase in corporate and institutional interest, according to Michael Saylor, chairman of Strategy. In an appearance on CNBC’s Closing Bell Overtime, Saylor emphasized the growing trend of corporate adoption of Bitcoin (BTC) and the ongoing acquisitions made by large exchange-traded funds (ETFs) on behalf of institutional investors, which he claims are effectively absorbing the available supply of the cryptocurrency.
Saylor pointed out that companies are purchasing more Bitcoin than what is produced daily by miners, creating upward pressure on prices. Current estimates suggest that miners generate approximately 900 Bitcoin each day, according to Bitbo. However, a report from River, a financial services company, indicates that by 2025, businesses could be consuming around 1,755 Bitcoin daily, with ETFs adding another estimated 1,430 Bitcoin per day. This significant demand from both categories is expected to contribute to a potential rally by year-end.
At present, Bitcoin is trading within a fluctuating range of $111,369 to $113,301, with a slightly broader seven-day range of $111,658 to $117,851, as reported by CoinGecko. The market has recently experienced turbulence, with nearly $2 billion in liquidations on Monday, attributed to technical factors rather than any fundamental weakness in the market.
Saylor expressed optimism about Bitcoin’s future price movements, suggesting that despite recent resistance and macroeconomic challenges, the cryptocurrency is likely to see a significant increase as the year concludes. He noted that the companies engaging in Bitcoin acquisition can be categorized into two primary groups. The first includes operating companies that prefer Bitcoin as a treasury reserve asset over returning capital through dividends or buybacks. Bitbo has identified at least 145 companies that have integrated Bitcoin into their balance sheets, with Strategy itself holding a notable 638,985 BTC.
The second category consists of “true treasury companies” that leverage Bitcoin as part of their financial strategy. Saylor likened the current evolution of digital assets to the historical reliance on gold-backed credit, suggesting that digital gold—Bitcoin—will underpin financial instruments for the foreseeable future. He asserted that there is a burgeoning demand for equity and credit instruments, positioning Bitcoin as a key asset to support traditional capital market activities.
As the final months of the year approach, all eyes will be on Bitcoin’s price trajectory and the role that corporate and institutional buying plays in its future.
