MicroStrategy’s founder and president, Michael Saylor, argued in his latest statement on CNBC that Bitcoin will outperform the S&P 500 index, which includes the largest US companies, in the long run. Saylor stated that his company expects an average annual return of 30% from Bitcoin.
Long Term Expectations and Price Target
Saylor drew attention by stating that he predicted a price of $13 million for Bitcoin in 2045. According to his assessment, Bitcoin could generate an average annual return of around 29% over the next 19 years. This claim appears to be significantly higher than the 10% long-term annual return the S&P 500 index has historically had.
S&P 500 is known as an important index that measures the performance of the 500 largest publicly traded companies in America on the stock market. Bitcoin stands out with its decentralized structure, limited supply and blockchain technology.
Mini glossary: MicroStrategy is a US-based business intelligence and cloud-based services company. In recent years, he has made a name for himself by investing a significant portion of his funds in Bitcoin.
| Presence | Change in 2024 (%) | Long Term Annual Return (%) | 2045 Target Price |
|---|---|---|---|
| Bitcoin | -12 | ~29-30 | $13 million |
| S&P 500 | +8 | ~10 | – |
“We believe Bitcoin will significantly outperform the S&P 500 with a 30% annualized return, supporting our long-term price target,” Michael Saylor explained.
Market Conditions and Critical Levels
Saylor is of the opinion that a new “spring period” has begun for Bitcoin in the market. In this context, he stated that $60 thousand constitutes an important bottom level for Bitcoin and that the current price band carries upward potential. Since the beginning of 2024, Bitcoin has fallen 12% while the S&P 500 has gained 8%. Despite this, Saylor thinks that Bitcoin can close this gap in the medium and long term.
It is reported that the increasing institutional interest and participation of large investors also supports confidence in Bitcoin.
Regulation and Institutional Investors
Saylor said he remains optimistic that the regulatory environment in the United States will improve. He particularly touched on the importance of the CLARITY Act, which passed the Senate Banking Committee last week and received bipartisan support. This bill is expected to provide the regulatory framework for digital assets.
Mini dictionary: CLARITY Act is a bill that aims to bring legal clarity to cryptocurrencies in the USA. With this regulation, it is expected that uncertainties in the sector will decrease and the participation of institutional investors will increase.
Additionally, Saylor stated that the US Securities and Exchange Commission (SEC) may introduce an innovation exemption for tokenized securities, which will strengthen blockchain-based financial transactions.
Corporate Strategy and Long Term Outlook
The fixed supply of Bitcoin and the change in treasury policies of states are among the factors that support Saylor’s positive outlook. MicroStrategy continues to grow its Bitcoin portfolio by leading institutional investors and companies.
It is known that Saylor has made similar statements before, even stating that Bitcoin could double or triple the performance of the S&P 500 in 4-8 years.
