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Bitcoin [BTC] and other cryptocurrencies reaching $15-20 trillion market cap will be the real bubble says Ambrosus CEO




Bitcoin [BTC] and other cryptocurrencies reaching $15-20 trillion market cap will be the real bubble says Ambrosus CEO
Source: Pixabay

In a recent interview, Ambrosus’ CEO, Angel Versetti, spoke about cryptocurrencies and if they are a bubble or not. He also said that it was too early to compare cryptocurrencies to a bubble.

Ever since cryptocurrencies started attracting mainstream media, the criticism of them being a bubble has exponentially increased. The criticism got stronger when Bitcoin touched its all-time high of $20,042 on December 17.

Speaking to The Independent, Versetti said that new technologies that are overvalued were mostly compared to bubbles. He added:

“While there are similarities in terms of overvalued new technology startups with unproven or unsustainable business models that were incessant in both dot-com and crypto, the sheer scale of crypto and dot-com businesses are not comparable. I do not believe we are, or were, anywhere close to a bubble with cryptocurrency.”

Bitcoin’s price has depreciated by approximately 80% since its previous high, and ever since the start of 2018, the price has been tumbling down non-stop. Although it has bounced back up a few times, the recent fall is huge. Versetti said that the prices for Bitcoin are undergoing a correction. He said:

“We are experiencing a strong correction, but the bubble has not formed yet. All the bankers and financiers jumping onto the crypto train signal that the bubble is yet to come. I think when all cryptocurrencies and tokens will be worth 15-20 trillion USD, that will be a bubble.”

In its 10-year history Bitcoin has suffered four major crashes. The first being in 2011, when Bitcoin slumped from $30 to $2 which was ~90% reduction in the prices, next comes the correction in 2013 where the price of Bitcoin plummeted from $2370 to $70, an overall decrease of ~70%.

The third one being the depreciation of price from $1200 to $168 which was again an 86% decrease. The fourth is the one we are currently facing. The price slump from $20,000 to $4237, which would at this point amount to a decrease of 78%.

Considering the above data, it could be speculated that the current direction Bitcoin’s price is taking is just a correction in the bear market and not bursting of a bubble.

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.


Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021





Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
Source: Unsplash

The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”

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