In a recent interview with Peter McCormack on Whatbitcoindid podcast, Tuur Demeester spoke about Bitcoin’s current market situation and the various aspects that impact the virtual asset’s market.
Tuur spoke about the Bitcoin’s current valuation and indicated that it was presently dictated by the accumulation of Bitcoin. He stated that the market was in a state of battle between the bears and bulls where the sellers are looking at how many Bitcoins are left in ICO treasuries. He believed that till the time Bitcoin traded in the range under $6500, it would be indicative of an accumulation stage.
He added that the market might navigate through some painful maturation in the upcoming period, like the Mt. Gox situation. He explained that the concentration of the larger amount of Bitcoin [BTC] in exchanges, organizations which were looking forward to pooling the asset, is an extremely risky condition. In a situation where those coins were stolen or new regulators freeze the assets, it could drastically spook that market.
Tuur further expressed his sentiments and indicated that according to him, the market remained highly volatile. However, he believed that Bitcoin [BTC] remained in a secular bull market since the inception of the coin and hence, he did not prefer the idea considering the impact of “discount bullish scenario.”
“I am not ready to say yes, that we are in a new bull market but I do definitely think that we are in the last phase of the current bear market.”
Additionally, Demeester stated that it was “dangerous” to rely on past patterns for future indications as the market can never be entirely replicated. The historical data based on technical analysis will only give the users hints of what situations might surface, but it is always based on a probability game.
Tuur emphasized that it was important that people do not rely on a single source of data like for example, only the price. Factors like long-term behavior, current market sentiments and retail activity in the market should also be considered.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
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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