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Bitcoin has maintained double-digit growth since the fourth quarter of 2023. By market capitalization, the leading cryptocurrency surged by 56.8% in the fourth quarter of 2023. According to data from TradingView, in the current quarter, i.e., the first quarter of 2024, BTC's stock price has risen by 60% at the time of writing. Commenting on the continued rise of Bitcoin, Fred Krueger, a seasoned tech investor, former Wall Street trader, and Bitcoin maximalist, pointed out:
"The risk-return ratio for Bitcoin is the best it's ever been. As for the prospects of BTC prices before and after the halving event, Krueger suggested that by April, the asset could reach $90,000 to $100,000.
Hence, the near-term target is approximately $100,000. For the long-term outlook, investors anticipate reaching $200,000 to $1 million by the end of the next halving cycle in 2028. The ultimate goal of hyper-bitcoinization is to reach $10 to $20 million within the next 20-30 years. Krueger stated that with a global population of approximately 8 billion people, Bitcoin's adoption rate is currently around 1%. An increase in adoption would lead to most things being priced in Bitcoin. Krueger added:
"As a Bitcoin user like myself, we believe the 21st century will be dominated by Bitcoin as an actual currency. We believe that in 50 years, most things will be priced in Bitcoin."
Key Risks for Bitcoin
However, the optimistic future of BTC faces a major risk. Krueger stated that Ethereum (ETH) is the main risk for Bitcoin.
"Ethereum is more programmable than Bitcoin, especially when you want to fully tokenize real-world assets. BlackRock often sees tokenization as their ultimate goal. Therefore, the large-scale tokenization of real-world assets will benefit Ethereum and pose a threat to Bitcoin."
Interestingly, Krueger believes that regulatory pressure is a threat to Bitcoin. He pointed out that millions of people can gain Bitcoin exposure through exchange-traded funds (ETFs), and the US Securities and Exchange Commission (SEC) may hesitate to classify these ETFs as securities.
Furthermore, BTC can still survive under regulatory pressure in the US, just as it did after China's ban in 2020.
BTC Dips Below $70,000
Meanwhile, Bitcoin faced resistance over the weekend, with increased short-term selling pressure since March 14th. At the time of writing, BTC's trading price is $684,000, lower than the recent high of $737,000. According to data from the smart currency analysis platform LookOnChain, selling pressure mainly comes from whale movements on the Binance exchange. The platform identified that BTC worth $329 million was transferred to Binance for offloading before the dump. |
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Post time 26-3-2024 23:50:49