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Renowned Bitcoin maximalist Adam Back recently evaluated the current market situation. A significant portion of investors believe that BTC price will fall below $56,000 within a few days. Therefore, there is almost no entry into altcoins, as this pattern of rise, fall, and quick recovery followed by another fall has been observed for a long time.
Adam Back’s Crypto Commentary
If investors are accustomed to trading within certain 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 says 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…
BitMEX founder Arthur Hayes predicts Bitcoin will reach $1 million 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 BTC price is the tendency of ETF investors to hold their assets longer. 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 returns are almost over, and while a major surplus supply issue is being resolved, this story is being written.
“When new money enters Bitcoin, the market value increases. However, the new money does not have 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 and store them in a custodian, this tends to raise 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 for the long term, then it has a bigger impact. Of course, there are 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. Therefore, when the price dropped a bit, not many ETFs were actually sold.”
