Edward Dowd, former Managing Director at BlackRock, referred to Bitcoin as “the Amazon of the crypto era,” which would eventually surpass gold. Bitcoin’s gold narrative is well-known and comes from the fact that it possesses many of the cam characteristics that gold does, just in digital form.
But with one important difference, Bitcoin is more portable.
Bitcoin Fear & Greed Index Jumps to 30 for the First Time Since May
Despite the widespread skepticism and the renewed calls by “Perma-Bears” that Bitcoin is dead, bitcoin continued rallying. This current rally has seen the Fear & Greed Index – a historically reliable indicator to measure investor sentiment – jump from 21 to 30 out of 100, exiting the Extreme Fear zone for the first time since May 5th. A large number of analysts believe that Bitcoin will stabilize and print new all-time highs once the current bear market passes. The big question is when that will be.
Mark Newton, global head of technical strategy at Fundstrat Global Advisors, is now confident that Bitcoin bottomed out at the $17,600 level. He is of the opinion that the current momentum that BTC has is positive and might continue to the $25,000 level and then continue with more longs towards $28,000.
As Bitcoin as Crosses $23,000 it Sees Liquidations of Over $100M
On Tuesday BTC traders saw liquidations above $148 million. Long and short traders were both affected, with $70 million BTC longs and $77 million shorts liquidated. As of early this morning more than 70,000 traders saw liquidations of over $284 million over the last 24 hours.
Mike Novogratz, founder and CEO of major financial services and investment management firm Galaxy Digital argues strongly that with the ever increasing rate of inflation the prices of hard assets and Bitcoin will definitely see a continued rise. At Bloomberg’s Crypto Summit on Tuesday he explained how the high levels of inflation were not going down anytime soon, with ‘hyperinflation’ looming in the economy’s future.
$500,000 Bitcoin Still In Play, According to Novogratz
The US touched a debt-to-GDP ratio of 140% and as Novogratz stated, this almost never ends without debt restructuring or hyperinflation. So the only way for the government to get out of this situation would be to inflate their way out and as such hard assets like Bitcoin would definitely come out on top. Although BTC is not the only asset, it is unique and its adoption is rapidly growing.
The former investment banker also believes that global bitcoin adoption will eventually propel it to surpass gold in the future and when asked if he stood by his earlier price prediction of Bitcoin reaching $500,000 in the next five years he replied “I do, I do.”
