Today’s Bitcoin Market Resembles Industry In 2016 Before The $20,000 Bull Run, Messari CEO Affirms
Current Bitcoin Market Resembles Industry In 2016 Before The $20,000 Bull Run, Messari CEO Affirms
Everybody is hyped in the crypto industry this week. The price of Bitcoin was finally able to push forward the $4,200 USD barrier and it has grown fast to the $5,000 USD base price, in which the token is right now. This has sparked a new interest in the asset and made several investors believe that the next bull run may be just around the corner.
Now, traders and investors are discussing technicals and fundamentals behind the price. While it is obvious that the technicals were what raised the price of the token, as you can see in any chart, the industry is currently looking for fundamentals that will explain the growth and show whether it has space for continuing or not.
Ryan Selkis, the CEO of Messari, a crypto company, has appeared to defend the idea that Bitcoin will rise in price again. Back when Bitcoin hit its lowest last year and it sank to around $3,300 USD, the CEO has affirmed that Bitcoin was best understood as “digital gold”. Why? Because it is not something that you should be trading all the time, but buying and storing because of its value.
Now, he is affirming that we are living a situation that is very similar to the one we just saw in 2016 prior to the bull run of 2017. This, he believes, is the proof that the fundamentals are aligning just right and that we are set to see the price of the asset shooting to the moon again.
Selkis talked about three specific factors which are important to understand the BTC market at the moment. The first aspect is that he still defends the idea of Bitcoin being the digital gold and he believes that, as prices go up, we will slowly see people turning from gold to this new asset.
Part of the reason why he expects that to happen is that several investors which will be made out of inheritance will start to invest in the digital world, unlike their parents. This, he believes, will give Bitcoin a strong boost in the future.
The second important point that was made by the Messari chief was that the institutional investors are starting to get deeply involved in this market. The sector is growing and companies like Fidelity Digital Assets and Bakkt will be very important for the continuity of this growth. Big investors will appear overnight and money will be injected into Bitcoin.
Finally, the last important aspect which he believes will be important is the Realized Value (RV) indicator, which measures how newly mined BTC enters the supply. As the number has begun to change, Selkis believe that this will also be very important for the industry’s growth.
Bitcoin Will Still Be Speculative
Another important point made by the CEO of Messari was that the speculative part of Bitcoin is bound to keep constant. He does not believe that the volatility will vanish or that the asset will simply stop to be speculative at all.
This is mostly because there is no central authority figure in Bitcoin. Without this kind of figure, the market will regulate itself and people will continue to try to make some money with speculation of this asset.
Although Selkis is not necessarily pro-speculation, he does not think that this is a very bad thing, either. Fiat currencies, he says, have an average life of 27 years. They are more stable but do not last so much time. Bitcoin, however, is non-sovereign and uncontrollable, so it will last forever and, because of this, become a very important way to store value.