Tuesday, 02 January 2024 12:17 GMT

Saylor Forecasts Year-End Bitcoin Surge Driven By Rising Demand


(MENAFN- Crypto Breaking) Bitcoin is poised for a potential rally toward the end of the year, driven by increasing corporate and institutional interest in the cryptocurrency market. Prominent industry advocate and Strategy executive chairman Michael Saylor emphasizes that this surge is fueled by rising demand from companies and ETFs, which are outpacing miners' supply and exerting upward pressure on Bitcoin's price.

  • Institutional and corporate Bitcoin purchases are surpassing daily mining output, creating strong buy pressure.
  • Bitcoin has maintained a stable trading range around $111,000 to $117,000, despite recent market fluctuations.
  • Large-scale liquidations occurred during a recent market decline, yet long-term fundamentals remain intact.
  • More companies are adding Bitcoin to their balance sheets, viewing it as a strategic treasury reserve asset.
  • Saylor predicts a year-end price rally as resistance levels are overcome and macroeconomic headwinds ease.

Bitcoin is expected to see renewed upward momentum by year's end, largely driven by the noticeable increase in corporate and institutional demand, according to Michael Saylor, Strategy's executive chairman. Speaking on CNBC's Closing Bell Overtime , Saylor highlighted that the rising accumulation of Bitcoin by large organizations and ETF funds is depleting available supply, which in turn increases buying pressure.

Strategy chair Michael Saylor said Bitcoin demand from ETFs and companies is surpassing daily miner supply, which could drive a year-end rally. Source: CNBC

On average, miners produce around 900 Bitcoin daily. An recent report by River Financial reveals that businesses are absorbing 1,755 Bitcoin per day in 2025, with ETFs further purchasing an additional 1,430 Bitcoin daily on average, intensifying the overall demand.

Buy pressure expected to drive prices higher toward year-end

Bitcoin's recent trading range has been between $111,369 and $113,301 over the past 24 hours, with its weekly range moving from $111,658 to $117,851, according to data from CoinGecko.

Amidst this stability, traders faced near $2 billion in liquidations during Monday's market dip-one of the largest of the year-attributed more to technical factors than fundamental weakness, researchers say.

“As we work through resistance levels and macroeconomic headwinds, I believe Bitcoin will resume its upward trajectory toward the end of the year,” Saylor added, suggesting a positive outlook despite recent volatility.

Corporate purchases strengthen Bitcoin's role in public company strategies

Saylor explained that Bitcoin-buying companies consist of two main groups. The first includes operating companies that traditionally return capital via dividends or buybacks but now prefer Bitcoin as a treasury reserve asset. Currently, at least 145 companies hold Bitcoin on their balance sheets, including Strategy, which manages nearly 639,000 BTC .

“This strategy enhances their capital structure and fortifies these companies,” Saylor said.

Related: Michael Saylor's Strategy acquires $100 million worth of Bitcoin amid Fed rate cut

The rise of“true” treasury companies capitalizing on Bitcoin

The second group comprises“true treasury companies” actively leveraging Bitcoin's potential. Saylor notes that just as the world once relied on gold-backed credit for centuries, now digital gold (Bitcoin) is emerging as the next frontier for capital and credit creation.

He further adds that Bitcoin is becoming the preferred digital capital for backing traditional equity and credit instruments, highlighting its strategic importance in financial markets.

Related: Hayes forecasts 'up only' for crypto, with concerns over ETH staking exit queues

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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