Strategy's Michael Saylor weighs in on whether bitcoin's four-year cycle is dead: CNBC Crypto World

Bitcoin Outlook & Market Drivers - Michael Saylor is bullish on Bitcoin in 2026, driven by bank acceptance and credit development within the banking network [4] - Half of the large US banks have started extending credit against IBIT in the past six months, with Charles Schwab and City planning to custody Bitcoin and extend credit against it in the first half of 2026 [4] - The impact of the Bitcoin halving is diminishing, with its $20 million impact being a third-order issue compared to the $50 billion daily liquidity [7] - Structural developments, such as banks extending $50 billion in credit and the SEC loosening restrictions on derivatives trading on IBIT (leading to open interest increasing from $10 billion to $50 billion), are the primary drivers of Bitcoin [8] Digital Asset Treasury (DAT) Companies & Digital Credit - Strategy was the first company to purchase Bitcoin as digital capital, with over 21,000 Bitcoin for $250 million in 2020 [9] - The number of companies holding Bitcoin as digital capital has grown significantly, from a handful to over 200 [11] - Strategy has evolved into the largest issuer of digital credit, with only a few other companies like Strive and MetaPlanet also in the digital credit market [12][13] - The rise of DATs is attributed to a supportive administration, fair value accounting, and Bitcoin's 50% annual growth rate [16][17][19] - Digital credit, offering yields of 600-800 basis points (6-8%) above risk-free rates, is seen as a compelling product powered by digital capital [22] Crypto Company IPOs & Regulatory Environment - The current administration's embrace of digital assets has facilitated crypto company IPOs, including Galaxy Digital, Circle, American Bitcoin, and Gemini [24][25] - Constructive legislation, such as the Genius Act legitimizing stablecoins, has opened the way for crypto exchanges to go public [25] - The industry seeks clarity on tokenizing securities and currencies, raising capital with crypto tokens, and engaging in decentralized finance, with expectations for resolution in the Clarity Act [41][42] Bitcoin vs Altcoins & Institutional Adoption - Bitcoin is positioned as digital capital competing with gold, real estate, and public equity, while stablecoins are digital currency competing with traditional credit card networks [34][35] - Institutional adoption of crypto is expected to continue progressively, driven by positive guidance from banking regulators and banks announcing plans to custody and hold Bitcoin [46][47] - Banks moving into offering credit on digital assets, especially Bitcoin, is seen as beneficial for both banks and Bitcoin, acknowledging the $2 trillion of unbanked wealth [45]