Bitcoin has been swinging wildly this week as traders brace for a “crushing” of the Federal Reserve that could trigger a “worse than 2008” crash.
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The bitcoin price fell back below $20,000 after attempting to breach the psychological threshold earlier this month, pushed lower by a surprise warning from the Biden administration.
Today, Michael Saylor, president and co-founder of software company MicroStrategy, has become a bitcoin acquisition vehicle.
predicted that the value of bitcoin will exceed that of gold within ten years, which could give bitcoin a price of $500,000 and a market capitalization of $10 trillion (although one Wall Street CEO called it “dangerous”).
The bitcoin price has plummeted over the past year, but some bitcoin investors remain optimistic.
“The next logical step for bitcoin is to replace gold as a non-sovereign store of value asset,” Saylor told MarketWatch this week, adding that gold is a $10 trillion asset. “Bitcoin is digital gold, it is 100 times better than gold and if bitcoin reaches the value of gold, it goes to $500,000 per bitcoin. »
Without giving a specific date, Saylor said he expects this to happen within the next ten years, predicting that Bitcoin will “go institutional,” initially recovering its $1 trillion asset position before exploding to $10 trillion.
In recent months, the world’s largest asset manager, Blackrock, has “opened the floodgates of bitcoin access for institutions” and investment giant Fidelity is reportedly considering offering bitcoin trading services to its members. 34.4 million retail investors.
Saylor cautioned, however, that he has no short-term price prediction, saying he has no idea what the price of bitcoin will be 12 months from now, but pointed to the extreme volatility in prices across asset classes due to the monetary policy of the Federal Reserve. policy tightening.
The price of bitcoin “touched [20 000 dollars par bitcoin] a few times. I think it’s stable,” Saylor said, pointing to bitcoin’s four-year moving average price as a potential floor.
The price of bitcoin has plummeted over the past year from nearly $70,000 per bitcoin to less than… [+] $20,000.
However, traders focusing on bitcoin’s short-term price outlook fear that the Fed’s historic interest rate hike program could cause more pain for bitcoin and the cryptocurrency market.
«Il already plus de douleur pour les investisseurs à court terme, car les marchés devront se frayer un chemin à travers ces nouvelles perspectives», declared Anto Paroian, director général du fonds speculatif sur les crypto-monnaies ARK36, dans des commentaires sent by mail.
“Long-term, there doesn’t seem to be much reason for optimism either, as the Fed expects to continue its hikes until 2023 and not start cutting rates until 2024.”
Last month, Saylor, who first used MicroStrategy money to buy bitcoin a little over two years ago, stepped down as CEO of the company to focus on buying bitcoin.
After buying an additional 300 bitcoins this week, MicroStrategy now has approximately 130,000 bitcoins, bought at an average price of just over $30,000 per bitcoin and spending nearly $4 billion.
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