Renowned Economist Alex Kruger: Bitcoin’s Price Staying Under $1,000 BTC/USD Could Kill the Coin
The famous trader and economist Alex Kruger expressed on Twitter his thoughts on how Bitcoin (BTC) could be eliminated for good.
Tech specialists are investing a lot of cash to control more than half of the crypto network, but Kruger thinks this process could be completely halted and that a government would be able to kill Bitcoin just by keeping its price at under $1,000.
Governments could stop bitcoin pretty simply.
Just short it. Keep it under $1000 for a long while, watch most people lose interest permanently. No need to bother with 51% attacks. https://t.co/5cUtFGPDvd
— Alex Krüger (@krugermacro) November 19, 2019
Price Suppression Would Convince Bitcoin Supporters to Give Up Cryptocurrency
Alex Kruger is just right with his tweet. If a government would suppress the price of the most dominant cryptocurrency, people would no longer be interested in it anymore. This would mean the asset would reach its end, considering it’s relying mostly on retail investors in order to remain above water. With time, those who passionately support the Bitcoin would no longer be so keen on the cryptocurrency, especially after seeing the price suppression is continuing to happen.
Bitcoin Is Relying on Retail Investors to Remain Above Water
A CoinShares research from July has noted how the Bitcoin had a 2019 rally from $3,000 to $13,880, which was the opposite of the bull-run from 2017. What supported this year’s ascension was institutional money. The fact that big players have entered the game has also been encouraging. Still, the main investors in Bitcoin are retailers. CryptoFundResearch has revealed there are around 804 crypto funds accounting for $18.16 billion in the cryptocurrency market capital.
Bitcoin Represents $146.9 Billion of the Total Market Cap
At the moment, all cryptocurrencies’ market cap is more than $222 billion, out of which $146.9 billion is of Bitcoin’s. This means that even if institutions have a portfolio mostly made of Bitcoin, their $18.16 billion is only 12.4% of the crypto market cap. Seeing institutions are buying other altcoins like Ethereum, it’s very likely the institutional share is somewhere at around 6%. All this means retail investors are the ones keeping the Bitcoin buoy. However, retail HODLers can be the victims of price manipulation, and if a government would eliminate all their hope, they would eventually capitulate.
The Price of Bitcoin Is Correlated with Searches on Google
Crypto market players are aware of the fact that Bitcoin’s price is highly correlated with the Google searches on the asset. However, they may not know just how high this correlation is. There’s a study that reveals the price of Bitcoin is correlated with 80.8% of the Google searches on the Bitcoin. This indicates retailers are very interested in the price swings. In the eventuality in which a government would suppress the Bitcoin price, the interest in cryptocurrency would significantly drop, which would further lead to lower prices and the government keeping the spiral going down.
This is entirely true because if a government would shake the ground for retailers, all the other HODLers and Bitcoin enthusiasts would follow. Their fight would last for a while, but with time, it would stop. Eventually, Bitcoin HODLers would be so few that their numbers would no longer matter.