Bitcoin Is One or Two Big Announcement Away From $30k
Tyler Winklevoss, the co-founder of Gemini, is confident Bitcoin is one or two big announcements away from $30k. In his view, possible catalysts will be a central bank purchasing Bitcoin and adding it to their balance sheet, or one more public company adding Bitcoin as part of their strategic investment. At the time of writing, the BTC/USD price was hovering above $22k, down 12 percent in the last week of trading.
The Bitcoin price has been on a tear in Q4 2020. Weeks ago, the coin was trading at around $10k before rallying, blasting above $20k, reaching $24k. The entry of public companies, deteriorating macros, and the preference of fluid store-of-value better than Bitcoin sparked by the Coronavirus pandemic, were part of the asset's drivers. MicroStrategy, on Dec 21, said it bought an additional $650 million of BTC driving their total haul to $1.15 billion. Other public companies to buy BTC include MassMutual, Square, and Mode Banking. Several hedge funds have also applied to the SEC for approvals as they seek exposure to cryptocurrencies through Grayscale. So far, there are few central banks—Iran, that have purchased Bitcoin to act as its reserve. Most prefer gold.
Impact on the BTC Price:
Neutral. Tyler's prediction will only come to pass if the BTC price not only rallies past $24k but more central banks follow Iran's lead of buying BTC. The country's central bank is actively buying BTC from miners to skirt US-imposed sanctions.
More market updates on our Blog