Bitcoin’s ‘main threat’ is regulation, BTC could reach $50ki year – Florian Grummes
(Kitco News) – While the Securities and Exchange Commission (SEC) is cracking down on cryptocurrency exchanges like Kraken, the “main threat” to Bitcoin remains regulation, according to Florian Grummes, Managing Partner at Midas Touch Consulting.
Grummes, who has over two decades of experience in the financial markets and is a technical analyst by training, said he is particularly concerned about the ups and downs of Bitcoin.
“They can’t stop [Bitcoin] the network itself, but if it is forbidden to send certain amounts of money to exchanges, there will not be enough people to buy it, and then it will move underground,” he claimed.
After a rough 2022, where Bitcoin lost 64 percent of its value, the coin experienced a rally in 2023, and is up 31 percent since January 1.
Grummes, using historical data and technical analysis, predicted that this upward trend would continue and that Bitcoin could reach as high as $50,000 this year.
“If it does the same as [it did] in 2019, after the bear cycle that started in December 2017, which took Bitcoin down from $20,000 to $3,200… But then Bitcoin quickly recovered from March 2019, and it went up 350 percent over three months,” he observed. “We could see something similar over the next few weeks and months, with Bitcoin recovering towards $35,000 to $50,000.”
Grummes spoke with David Lin, anchor and producer at Kitco News.
Bitcoin as a reserve asset?
A common argument among so-called Bitcoin Maximalists, those who promote Bitcoin as the only true digital resource, is that Bitcoin will become a reserve asset in the future, due to its scarcity and decentralized network. Bitcoin maxis argue that central banks around the world can use Bitcoin in a way similar to how gold was used under the gold standard.
Grummes called such a proposal a “wet dream” that would take “decades” to manifest.
“There’s certainly the potential there, but I think it will also take decades,” he said. “We could see a very different set-up if there is no trust between the major nations that rule the planet.”
To find out what Florian thinks could lead to a breakdown in trust between major nations, and whether he thinks World War 3 is likely, watch the video above.
Follow David Lin on Twitter: @davidlin_TV
Follow Kitco News on Twitter: @KitcoNewsNOW
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
