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Michael Saylor Remains Bullish on Bitcoin Despite Bearish Market Tone

Michael Saylor Remains Bullish on Bitcoin Despite Bearish Market Tone

Speaking at a video conference in Australia, new executive chairman of MicroStrategy and Bitcoin maximalist Michael Saylor believes that Ethereum porting to a Proof-of-Stake (PoS) consensus mechanism is, in fact, good for Bitcoin (BTC), according to Bloomberg.

Saylor argued that Bitcoin is the only cryptocurrency known to be universally accepted and that it is a “proven method for creating a digital commodity.” The entrepreneur added that he only sees Bitcoin getting stronger over time, not weaker.

$1 Million for Proof-of-Stake Bitcoin

Saylor’s comments come shortly after news that climate organization Environmental Working Group has pledged $1 million to sell the narrative of Bitcoin going the Ethereum way by becoming a PoS chain. According to the group, the pledged funds will be targeted at online campaigns that raise awareness about how the global climate predicament can improve with BTC going green.

However, this campaign may take a significant amount of time to make any headway, given how BTC is deemed “perfect” as a Proof-of-Work (PoW) or minable system by community members. Core BTC supporters also believe the PoW mechanism is the best way to maintain true decentralization, which Bitcoin represented when it first launched. Already, more instances of centralization can be seen in the PoS Ethereum, as big corporations now control many of its validator nodes.

While Bitcoin can be said to have a high carbon footprint, it serves some useful purposes, such as stabilizing energy grids and utilizing excess methane effluent from oil drilling.

Goldman Sachs Analyst Bearish on Bitcoin

Analysts at Goldman Sachs do not share Michael Saylor’s sentiments. A team of economists at Goldman Sachs have reviewed their expectations for a US Fed rate hike, increasing their forecasts for September and November to 0.75% and 0.50%, respectively.

With the Federal Reserve looking to get more aggressive in its fight against inflation and BTC sharing a stronger correlation with the Nasdaq Composite stock market, Goldman Sachs analysts believe there could be sharp reactions for the benchmark cryptocurrency.

This outlook is highlighted by the recent increase in BTC short positions by institutional investors. This was according to CME data highlighted in the Commodity Futures Trading Commission (CFTC)’s weekly report.

Source: CFTC/Ecoinometrics
Source: CFTC/Ecoinometrics

An analyst from Ecoinometrics noted that the latest trend highlighted by the CME data could be a telltale sign of a risk asset meltdown in the coming months.

What are the Technicals Saying?

The daily time frame chart highlights that BTC is in a precariously bearish position, with the $20,000 line kicking against any near-term respite. After suffering a sharp slump near the $23,000 mark after the US CPI release, the primary cryptocurrency returned to a range-bound movement within the $20,500 to $19,600 area.

BTC/USD Daily Chart on TradingView
BTC/USD Daily Chart on TradingView

So far, Bitcoin has done a good job of keeping its head above the $19,600 base, given the significance of that level. A breach below this mark, with the backdrop of a possible 100 basis point rate hike this week, could open the door for a retreat towards the $18,000 level and lower. As such, BTC bulls need to revolt against any sustained bearish move in the coming days.

BTC Statistics Data

BTC Current Price: $19,700

BTC Market Cap: $378B

BTC Circulating Supply: 19.15M

BTC Total Supply: 21M

BTC Market Ranking: #1

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Disclaimer

This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.


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