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Bitcoin‘s (BTC) breaking the $42,000 resistance on December 4th, the unconfirmed news that Qatar will invest $500 billion in the largest cryptocurrency created a stir. Cryptocurrency educator and analyst Luke Broyles denied this claim, which caused a bombshell effect in the cryptocurrency market, and warned to be cautious against such allegations.
The Allegation of Qatar that Caused a Stir in the Cryptocurrency Market
The news of Qatar’s $500 billion investment in Bitcoin drew the attention of participants in the cryptocurrency market. The mentioned investment amount was too high to be realistic considering the current supply and price of Bitcoin. Broyles, who opposed this rumor, told his followers that the news was not true.
Although Broyles admitted that the rumor excited investors, he emphasized that expectations should have a limit and drew attention to the speculative nature of the allegations. The analyst highlighted the magnitude of the alleged investment, pointing out that it was 671 times higher than the Bitcoin position of industry giant Michael Saylor’s company, MicroStrategy. Currently, MicroStrategy is the company holding the most BTC among all institutional investors. After the recent purchase of 16,130 BTC, the number of BTC held by the company reached 175,000.
In the midst of speculation about Qatar’s Bitcoin investment, the analyst referred to the critical state of Bitcoin’s supply. He claimed that there is only $76 billion worth of BTC left in cryptocurrency exchanges and that any major purchase would inevitably drive up prices, highlighting the fundamental principle of Bitcoin’s immovable supply. This could pave the way for a change in the cryptocurrency market cycle.
A follower commented on Broyles’ post denying Qatar’s Bitcoin investment, pointing out that the country’s GDP is less than $475 billion. Broyles, accepting the financial context, claimed that even if Qatar added Bitcoin to its investment funds, the next price increase would rapidly expand its position and the State Asset Fund.
The Result of Bitcoin Attracting Large Investments
Although Broyles acknowledged that the Qatar rumor was an unconfirmed claim and far from reality, he said that large-scale investments in Bitcoin are inevitable. The analyst argued that Bitcoin seems ready for significant changes in its investor model due to the increase in US debt and the changing impact of technology on lowering prices.
Challenging the perception of Bitcoin’s value, the analyst claimed that even though the price reached $42,000, it is still an attractive investment and that this price point is advantageous in many ways as if it were $42.
