Michael Saylor, MicroStrategy’s Michael Saylor, says that bitcoin’s current rally marks the beginning of a new bull market.

The cofounder of the software company attributes the new bullish market to the halving of bitcoin, increased adoption of crypto assets, and regulatory crackdowns on the industry, which should benefit bitcoin.

Saylor believes that investor and developer interest in other blockchains will shift to Bitcoin’s as regulations begin to eliminate competitors such as Ethereum. In an earlier statement, US Securities and Exchange Commission Chairman Gary Gensler stated that “everything but bitcoin” is subject to securities laws.

He told CNBC that crypto tokens will be regulated and may even go out of existence. The token is one commodity the SEC won’t regulate. Bitcoin is the most secure system. It is the most secure asset. The black cloud is hanging over everything else.

He said: “You’re going see a constant flow of capital from the rest [of the crypto ecosystem] into bitcoin.”

Saylor points out that the Financial Accounting Standards Board also released recently proposed guidance for crypto accounting and reporting. This is another significant milestone. This provides MicroStrategy and other companies who hold crypto assets on their balance sheet with more clarity and transparency, which may lead to a wider adoption.

He said that the FASB’s initiative to adopt fair-value accounting was a positive development.

The halving of Bitcoin and the migration of Ordinals Inscriptions on its network are also bullish.

Ordinals, a protocol which expands the use cases of blockchains, has recently also helped to set a new record in daily Bitcoin transactions. Bitcoin’s halving is a technical event which occurs approximately every four years. It’s tentatively scheduled for April 2024.

The halving of bitcoins can increase its scarcity, which could boost the price.

Saylor believes that despite the ‘growing pains’ of bitcoin, there are many factors which make it a bullish asset.

“Nearly all the bad leverage is gone.” All those involved in shorting bitcoins, rehypothecating Bitcoins, and lending bitcoins have gone bankrupt. Saylor said that the remaining exchanges, where it is possible to short bitcoin, are facing a lot of regulatory pressure.

He continued: “I think Bitcoin has reached its bottom. I don’t think it has leverage. I think that we are on a bull-run.