With bitcoin – the world’s number one digital currency by market cap – dropping every two minutes, there are many analysts out there weighing in and giving their thoughts and opinions about where the asset will go.
Bitcoin Has Fallen Again
There is wide speculation that bitcoin could fall below the $30,000 mark in the coming weeks. Michael Saylor of MicroStrategy fame says:
Nation state conflicts create uncertainty, constrain production, weaken currency, cripple trade, and undermine credit, making investments in debt & equity riskier and underscoring the benefit of converting treasury assets into pure digital energy – bitcoin. Wars create inflation, cripple commerce, and make bitcoin compelling.
Bitcoin has been in a bearish state over the past several weeks, though the currency has taken a real beating now that Russia has invaded Ukraine. Sam Bankman-Fried of the crypto exchange FTX says:
What should BTC be doing here? Well, on the one hand, if the world gets shi*tier, people have less free cash. Basically, selling BTC — along with stocks, etc.— to pay for war. On the other hand, this is likely destabilizing for Eastern European currencies, and more generally, for Eastern European financial systems. This means they might be looking to alternatives. If you were in Ukraine right now, where would you trust your money? So, there are arguments both ways for what should be happening to BTC right now. I’m not sure I would have guessed it would go down based on the fundamentals. There’s a push and a pull, with fundamental investors buying and algorithmic investors selling. On net, BTC ends up halfway in between, down eight percent on the day, but I also think we’re probably in a new regime than we’ve been in the last year and a half. We’ll have to see how things work here.
Charles Hoskinson of Cardano fame also threw his two cents into the mix, saying:
People often say that I shouldn’t wade into politics, and I keep reminding people the core of who we are as an industry is political, because our fight isn’t about a particular token having a higher price over another token. Our fight is ultimately one of liberty and freedom — to give people the power to be their own institutions, to be their own bank. To verify what previously could not be verified, whatever that might be.
What Will Other Countries Do?
Lastly, there’s Anthony Pompliano, co-founder of Morgan Creek Digital. He commented:
The United States has to start considering what to do in a world where a large portion of the world doesn’t use the US dollar as their reserve currency. The hypothetical situation would see Russia and China, who have long publicly stated their intention to get off the US dollar system, decide that the costs of using the current global reserve currency has become too high.