Why I'm Sure BTC Can Reach $249K
Slap yourself if you sell Bitcoin under $249,000.
Any number will do actually. Just a matter of time for the numbers to go up.
(Mr. CZ of Binance, Jan 14 2021)
Then I saw her face, now I'm a believer,
Not a trace of doubt in my mind.
(The Monkeys, 1966)
Well, quite unlike 2017, today I'm pretty much inclined to trust Mr. CZ's words. Especially Mr. CZ's words, I'd say.
"Huh, now you're a crypobeliever!", you might say. Yes, I'm, at least to some extend. The only question is what exactly I believe in.
I believe that Bitcoin can reach $249K in foreseeable future. I believe it can reach $100K this year. Because besides Mr. CZ's words, I have at least two other reasons for that.
First, unlike 2017, today some big guys have already bought themselves into crypto pretty deep. Moreover, some of them have bought themselves in rather recently and with other guys' money, so now they have to show their clients some decent ROI, at least on paper. And pretty much the only way to provide this ROI is to pump BTC price further up. And even more important is that now they simply can't cash their BTC paper profits even if they'd wanted to. Cashing it all out will dump the market to the floor. To cash the paper profits the guys need eager buyers, moar buyers, who can swallow BTCs in thousands without altering the price that much. I mean, the big guys who managed to buy themselves into crypto (for whatever reason) at pretty high prices (i.e. during the 2017 hype and later), have no other way except to push the price up and further up. Fortunately, Mr. Saylor, Mr. CZ et al are good showmen, among other things. As far as I can see, the guys know how to shill crypto to the prospective "target audience" (I hope I will make another article on what this "audience" is).
Second, we have a pretty funny thing called Tether, a company that rules USDT stablecoin. On their website the guys say All tethers are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves. Well, right now they must have about $24 billions of "reserves" staked somewhere. Of course, I don't have any proof, but I suspect there exists nothing close to those "reserves". In other words, the guys might be baking USDT out of thin air -- and this air goes straight to the exchanges puffing the bubble... If my suspicions are true, then only God knows how far this bakery puffing can go before the investigators come and close the cozy bucketshop. I hope I will make another article about "stablecoins".
In the end, I must note that the road to $249K may be rather bumpy. I wouldn't be impressed to see BTC at $5K some day (I don't think it's very probable, though). But overall, on average, I'm pretty bullish right now.
Go, CZ, go!
Posted Using LeoFinance Beta