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Renowned Bitcoin maximalist Adam Back recently evaluated the current market situation. A significant portion of investors believes BTC price will drop below $56,000 within a few days. Therefore, there are almost no entries into altcoins as this pattern of rise, fall, and rapid recovery followed by another fall has been observed for a long time.
Adam Back’s Crypto Commentary
If investors are accustomed to trading within a certain range of fluctuations, we need to see movements that will leave them out at some point. If historical data repeats, we can soon say, “we told you so.” Bitcoin will rise without looking back at some point, and altcoins will quickly follow.
Blockstream CEO Adam Back states that the leading cryptocurrency is still in the early stages of a bull market in the current cycle. In his latest interview with Anna Tutova, he mentioned a growth potential of up to 700%.
“I can still say we are in the early stages of the bull market…
I see BitMEX founder Arthur Hayes predicting $1 million per Bitcoin by the end of this cycle. Other people have said half a million. So I think anything within this range is possible.”
Why Will Cryptocurrencies Increase?
According to Adam Back, what will increase the BTC price is the tendency of ETF investors to hold their assets for a longer period. This is significant, and with more retirement funds entering this space in the future, a very different picture will emerge. We will see days when the supply ready for sale significantly shrinks.
Indeed, Germany sold, the US is depleting its assets, Mt Gox refunds are almost over, and as a major surplus supply problem is being resolved, this story is being written.
“When new money enters Bitcoin, the market value increases. However, the new money doesn’t need to be as much as the increase in market value because the price is determined at the margin, and there doesn’t need to be that much Bitcoin on the exchange.
Therefore, as new users buy these coins and store them cold, or as ETFs buy them and store them in a custodian, this tends to increase the price.
You know, $1 million (entry) can increase the market value by $50 million or $100 million. It really depends on the type of buyer.
So if the buyer is buying Bitcoin and holding it long-term, then it has a bigger impact. Of course, there are also Bitcoin holders who learn to buy over time, store cold, and not transact much. Now, what we didn’t know was how ETF investors would behave.
But the evidence so far suggests they are holding. So when the price dropped a bit, not many ETFs were actually sold.”
