Renowned Bitcoin maximalist Adam Back recently evaluated the current market situation. Many investors believe BTC price will drop below $56,000 within a few days.
Adam Back's Commentary
Blockstream CEO Adam Back states that the leading cryptocurrency is still in the early stages of a bull market in the current cycle. In his latest interview with Anna Tutova, he mentioned a growth potential of up to 700%. > I can still say we are in the early stages of the bull market... I see BitMEX founder Arthur Hayes predicting $1 million per Bitcoin by the end of this cycle. Other people have said half a million. So I think anything within this range is possible.
Reasons for Cryptocurrency Growth
According to Adam Back, what will increase the BTC price is the tendency of ETF investors to hold their assets for a longer period. This is significant, and with more retirement funds entering this space in the future, a very different picture will emerge. We will see days when the supply ready for sale significantly shrinks.
Role of ETF Investors
When new money enters Bitcoin, the market value increases. However, the new money doesn’t need to be as much as the increase in market value because the price is determined at the margin, and there doesn’t need to be that much Bitcoin on the exchange. > When new users buy these coins and store cold, or as ETFs buy them and store in a custodian, this tends to increase the price. You know, $1 million (entry) can increase the market value by $50 million or $100 million. It really depends on the type of buyer. But the evidence so far suggests they are holding.
Summarizing the aspects highlighted by Adam Back, it can be concluded that the current Bitcoin market state and the role of ETF investors provide grounds for optimism in the future growth of cryptocurrency value.
Comments