Main points
- main Businesses and governments are increasingly investing in Bitcoin ($BTC)potentially pushing its price past $100,000. Technical indicators also point to higher prices.
- Bitcoin could eventually replace gold As a store of value, its market value reaches US$16T.
- The new U.S. administration is expected to Revise existing regulations and appoint pro-cryptocurrency officials.
This morning, $BTC broke a new record high of $97,900. Unlike the 2017 bull market, which was primarily driven by retail investment, this time we see Accelerate institutional and government adoption of BTC.
Galaxy Digital Holdings CEO Mike Novogratz noted Many countries are buying BTC in large quantitieswhich can further increase its value.
The gold rush of the 21st century
Novogratz believes that Trump’s promise to become a “crypto president” helped him win the election and encouraged other global leaders to invest in USD Bitcoin.
While Novogratz believes that the likelihood of the United States establishing a strategic reserve of U.S. dollars in Bitcoin is low due to the cumbersome legislative process, he acknowledges that it would bring benefits.
That is, stockpiles can give the United States a geopolitical advantage and make it a technologically-first nation.
When thinking about the potential of BTC to replace gold as a store of value, Novogratz pointed out that the current total market value of gold is approximately US$16T. If BTC can become parity with gold, Its price will soar to about $800,000.
Novogratz, who is about to turn 60, still owns gold, but highlights a generational shift in investment preferences. Given that the younger generation is more inclined to invest in digital assets, Bitcoin’s market cap could match gold’s in the next decade.
Institutions in industries such as biopharmaceuticals, business intelligence, and technology are also adopting BTC as a treasury asset.
For example, Hoth Therapeutics bought $1M worth of BTC As a hedge against inflation – a modest amount compared to the $4.6B $BTC held by MicroStrategy.
Ripple CEO expects regulatory easing
Crypto industry players have high hopes for a Trump presidency — specifically, Ripple CEO Brad Garlinghouse anticipates loosening regulations to ease compliance.
This includes replacing the SEC’s current Howey test used to determine whether a specific token qualifies as a security with a tool that addresses the industry’s unique characteristics.
Another highly anticipated change is Appoint new SEC chairmanPotential candidates include Dan Gallagher, Teresa Goody and Commissioner Mark Uyeda.
Garlinghouse noted that whoever becomes Trump’s choice should work closely with Congress to address regulatory shortcomings. Trump also intends to appoint a cryptocurrency czar to coordinate the work of the SEC and the Commodity Futures Trading Commission (CFTC).
Technical indicators are bullish
Skeptics believe that Bitcoin prices have already peaked and further price increases are unlikely. However, $BTC’s breakout of an ascending triangle pattern and Fibonacci extension levels suggests this Will hit $100,000 soon.
On the other hand, a higher RSI (RSI) signals overboughtwhich means BTC may need to correct.
Regardless of BTC’s short-term performance, Massive adoption by institutions and governments points to positive long-term outlook.
refer to
Lola is a writer living in Ireland. Her background in finance and interest in technology help her present complex concepts in an accessible and entertaining way, which is especially useful when it comes to the world of cryptocurrency and blockchain technology. She started out as an agency copywriter, quickly moved on to freelancing, and later started a family-run digital marketing agency. In her spare time, Lola takes dance classes or immerses herself in reading, preferring technology journalism or postmodern literature.
View all posts by Lola Pence
Central to Technical Report’s editorial policy is the provision of useful, accurate content that provides real value to our readers. We only work with experienced writers who have specific knowledge of the topics they cover, including the latest developments in technology, online privacy, cryptocurrency, software, and more. Our editorial policy ensures that every topic is researched and curated by our in-house editors. We maintain strict journalistic standards and every article is 100% written by authentic authors.
