Bitcoin ‘Next Logical Stop’ – Saylor Makes Huge $10 Trillion Crypto Price Prediction
Bitcoin has swung wildly this week as traders braced for a “sledgehammer” from the Federal Reserve that could trigger a crash “worse than 2008.”
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Bitcoin price has crashed back below $20,000 per bitcoin after trying to climb above the psychological level earlier this month – pushed down by a surprise warning from the Biden administration.
Now Michael Saylor, chairman and co-founder of software company MicroStrategy, became a bitcoin acquisition
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The bitcoin price has crashed in the past year, but some bullish bitcoin investors remain bullish.
“The next logical stop for bitcoin is to replace gold as a non-sovereign store of value,” Saylor said MarketWatch this week there is a value of 10 trillion dollars to add to gold. “Bitcoin is digital gold, it’s 100 times better than gold and if bitcoin goes to the gold value it goes to $500,000 per bitcoin.”
Without naming an exact date, Saylor said he expects that to happen within the next ten years, predicting that bitcoin will “institutionalize,” first regaining its position as a $1 trillion asset before exploding to $10 trillion.
In recent months, the world’s largest asset manager Blackrock has “opened the floodgates for institutions to access bitcoin,” and investment giant Fidelity is reportedly considering offering bitcoin trading services to its 34.4 million private investor base.
However, Saylor cautioned that he does not have a short-term price prediction, saying he has no idea what the bitcoin price will be in 12 months, but noted the extreme price volatility across all asset classes due to the Federal Reserve’s monetary tightening policy .
Bitcoin price “has touched [$20,000 per bitcoin] a few times. I think this is stable,” Saylor said, pointing to the bitcoin price’s four-year moving average for a potential bottom.
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The Bitcoin price has crashed over the past year, plunging from nearly $70,000 per bitcoin to below … [+]
However, traders focused on bitcoin’s short-term price outlook are concerned that the Fed’s program of historic rate hikes could cause further pain for the bitcoin and crypto markets.
“There is more pain for investors in the near term as markets have to work through this new outlook,” Anto Paroian, CEO of cryptocurrency hedge fund ARK36, said in an emailed statement.
“In the longer term, there appears to be little cause for optimism either, as the Fed expects to continue hiking through 2023 and only begin cutting rates in 2024.”
Last month, Saylor, who first used MicroStrategy money to buy bitcoin a little over two years ago, stepped down as the company’s CEO to focus on bitcoin purchases.
After buying another 300 bitcoins this week, MicroStrategy now has about 130,000 bitcoins, bought at an average price of just over $30,000 per bitcoin and spending nearly $4 billion.
