Bitcoin's Bullish Outlook Amid Profit-Taking Dip: Saylor Views it as Ideal Entry Point
Summary:
This article covers Bitcoin's recent price fluctuation, nearly reaching $36,000 before retracting to $34,250. Amid these changes, a number of analysts remain bullish on Bitcoin. MicroStrategy CEO Michael Saylor, a perennial Bitcoin enthusiast, shares his optimistic view about Bitcoin's upcoming halving and its impact on market selling. Despite the cryptocurrency's price being below its all-time high, Saylor suggests this could be an ideal time for market entry. He anticipates substantial advancement in the industry when Bitcoin is managed by Wall Street banks and reliable custodians. The piece concludes by urging readers to conduct their own investment research due to inherent risks.
Bitcoin's price almost reached the $36,000 milestone this week before unexpectedly swerving back to a comfortable $34,250. It's reasonable to expect such a fluctuation after the crypto giant's near 30% surge over the last month. While some traders are securing their profits and market players scrutinize the fuel behind the rally, a number of experts still hold a bullish view on Bitcoin. They're on the lookout for another possible “gamma squeeze” should Bitcoin breach the $36,300 barrier. High-profile Bitcoin enthusiasts such as Michael Saylor, CEO of MicroStrategy, seemed unfazed by the oscillating price action. Indeed, on November 1, MicroStrategy revealed it had bought an additional 155 Bitcoins, spending $5.3 million in the month of October. The company's total Bitcoin collection now amounts to 158,400.
When probed about the forthcoming Bitcoin halving during a CNBC Squawk on the Street interview, Saylor responded that right now, "Bitcoin miners - who need to sell to cover their electricity bills, capital costs, and debts - are the primary Bitcoin sellers in the market, to the tune of about a billion dollars monthly." He went on to say that "this forced selling is set to be halved by next April or towards the end of April.” Saylor elaborates on the effects of this halving on market conditions claiming, “This means that annual selling will reduce from $12 billion to $6 billion, just as the launch of initiatives like Bitcoin spot ETFs propel demand for the crypto asset. This unique situation - rising demand alongside a shrinking supply - is why optimists are forecasting a bullish 12 months ahead.”
Even after accruing a 114% increase in its price, with 30% occurring over the last month alone, Bitcoin's price remains nearly 50% below its highest recorded value. Saylor suggested that despite the memory of upsetting events like the FTX collapse and other crypto controversies, “If you have a horizon of 12-48 months, this could be a very optimal point to enter the market.” He also stated, “When Bitcoin is managed by Wall Street banks and reliable custodians and the industry shifts its attention from volatile tokens that have eroded shareholder value, I believe the industry will advance a level leading to a tenfold growth from here.” This news piece does not contain any investment advice or recommendations. All investments and trading moves involve risks, and readers are urged to carry out their own research before making a decision.
Published At
11/2/2023 8:30:00 PM
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