Experts agree – Bitcoin prepares for “crazy rocket ship ride”

  • Legendary investor, Paul Tudor Jones, compares Bitcoin (BTC) to internet company stocks in its early days during the 1990s.
  • Qiao Wang predicts a massive upward movement for BTC when it breaks $20.000. 

In an interview with Yahoo Finance, legendary investor Paul Tudor Jones reiterated his bullish case for Bitcoin. Jones believes that the market capitalization of the cryptocurrency is “wrong”. BTC has a market capitalization of $360 billion, which does not represent its most important feature – a limited supply of 21 million. In contrast to Bitcoin, there are $93 trillion in equities, about $9 trillion in gold, and “God knows how many trillions of fiat currency“.

The legendary investor wrote a note in May in which he compared Bitcoin to gold in the 1970s. At this time, Bitcoin was barely recovering from the market crash in March, when its price fell below $4,000. Now, the legendary investor claimed that BTC resembles Internet stocks during their early days in the 1990s.

Because the internet was in its infancy, nobody knew how to value it because of the world of possibility that lay ahead. What you can be certain of, is that probably 20 years of now, our kids and grandkids will be using some kind of digital currency.

In the future, cryptocurrencies and digital assets could be divided into those with a limited supply or “precious cryptocurrencies” and others that are used for more everyday transactions, such as the stablecoin Tether or Ethereum.

And so in that world, where does Bitcoin fit in? As well as some of the other cryptocurrencies. Where does Ethereum or Tether (fit)?

Tudor Jones stressed again that Bitcoin will be the most important cryptocurrency among what could be described as “precious crypto,” reiterating that its limited supply is one of its most important characteristics. This gives BTC “historical integrity”. The legendary investor also added:

Crypto’s going to have a crazy rocket ship ride, going up and down along the way. But my guess is, Bitcoin in particular will be substantially higher in 20 years than where it is right now. And who knows what role it has in the monetary system?

Jones believes that the traditional market is on a migration path in investments, after the uncertainty over the outcome of the presidential election has dissipated. Therefore, he expects that there will be an increase in investments in “riskier assets”, and thus benefit Bitcoin massively.

What will happen when Bitcoin breaches $20,000?

The expert Qiao Wang agrees. According to him, the market is preparing for a bullish period, after a bear market that lasted for 3 years. In that sense, Wang believes that the $20,000 mark will be the beginning of a new, unprecedented upward trend:

Once we break $20k (imminent and inevitable), we can throw valuation and fundamentals out of the window. It’s all going to be one giant momentum trade. The best performers will be the ones with the largest distribution channels, lowest price, and the best memes.

Wang added that the behavior of BTC and the crypto market will then be difficult to predict. In addition, he thinks that big investors will continue to play a key role in 2021. Institutional giants like BlackRock have already expressed interest in gaining exposure to Bitcoin.

Timing the macro top will be extremely difficult this time, with institutions potentially muting extreme moves. There will still be a lot of retail but IMO institutions are in charge of the market this time. So macro narratives (eg, inflation) are important to pay attention to.

Der Beitrag Experts agree – Bitcoin prepares for “crazy rocket ship ride” erschien zuerst auf Crypto News Flash.

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