The experts' reaction to the rise of Bitcoin


The experts' reaction to the rise of Bitcoin.

  • On December 4th, the Bitcoin price reached its highest point since March 2022. 
  • Some experts believe this marks the beginning of a new bullish cycle, while others are convinced it's the "last gasp" for the asset.

On December 4, 2023, the price of Bitcoin reached a new high since March 2022, hitting $42,420 at the moment. The surge in the asset's price sparked a mixed reaction on X (formerly Twitter). Some experts declared the onset of a new bullish cycle, while others criticized both the cryptocurrency itself and those investing in it.

Is a new ATH (All-Time High) on the horizon? 

Supporting this thesis is Adam Cochran, managing partner of the CEHV fund. Notably, he previously held a cautious stance, pointing out signs of a prolonged "bearish" cycle throughout 2023.

BitcoinBTC Price: $43,169 -2.19% 24h Volume: $10b

CEO of the crypto startup JAN3com, Samson Mou, partially agrees with him. He noted that the current growth in the Bitcoin market differs from previous occurrences:

"Last time, there was a large volume of easily accessible money due to quantitative easing policies. This time it's different. Money is scarce, interest rates are high, yet everyone is investing in Bitcoin. Take note."

What to expect next?

 Some experts maintain the belief that this price surge will be followed by a market downturn. However, analyst Dylan Leclerc from UTXO Management disagrees with this.

"Accumulation continues. The distribution of supply from hodlers is unlikely to occur until the price stabilizes, as it usually happens."

Analyst James Straten from CryptoSlate noted that during the period from December 1st to December 5th, 2023, the profit of short-term Bitcoin holders amounted to $4.5 billion. He emphasized that the last time something similar occurred was in November 2021 when the asset's price reached an all-time high.

Straten, like many other experts, sees this as a sign of an impending bullish cycle.

Crypto influencer Anthony Pompliano agrees that Bitcoin holders, seemingly, are not keen on selling it anytime soon. He also expressed the thesis about a likely further surge in the price:

"Now that Bitcoin is prevailing again in this [gold] dispute, we will likely see it more frequently in the headlines. Historically, this has led to further capital influx and price growth. [...] By the way, despite the 150% increase in value since the beginning of 2023, the percentage of coins that have not been in circulation for over a year has reached its peak," he stated.”

According to Pompliano, the high scarcity of liquidity in the circulating supply creates a loop of positive feedback as the value increases. Additionally, the expert stated that while the approval of spot Bitcoin ETFs may not triple the asset's price, it will undoubtedly lead to a significant surge.

Managing Partner at CMCC Crest, Willy Wu, also discussed the topic of spot Bitcoin ETFs. He compared them to another exchange-traded fund, the SPDR Gold Trust. After the launch of the latter in the gold market, there was an upward price trend for eight years. Wu believes that Bitcoin could replicate this success:

Is everyone holding this view?

Despite the new rally in the Bitcoin market, many experts still remain skeptical about the asset. Perhaps the most prominent example is Peter Schiff, the president of Euro Pacific Capital Inc.

On his X page, he highlighted the surge in the price of gold. According to him, further growth in the value of gold is only a matter of time. However, he considers Bitcoin to be a modern digital version of “fool's gold”.

According to BullionByPost, the price of gold did indeed reach a peak at $2198 on December 4, 2023. However, the price subsequently dropped to around $2030, where the asset is currently trading at the time of writing.

Gold price per ounce. Source: BullionByPost.

Schiff attributed the rise in the Bitcoin market to this particular decline in gold. However, according to him, the surge mentioned is nothing more than a 'swan song' for the cryptocurrency, which will be followed by a collapse.

Another supporter of gold is the journalist and New York Times contributor Lawrence MacDonald. In his statement, he emphasized the high volatility of Bitcoin, noting that the current price of the asset is still quite far from its ATH (All-Time High):

It's noteworthy that this statement was commented on by a renowned crypto analyst known under the pseudonym PlanB. According to him, MacDonald's assertion is the most vivid confirmation of the thesis that the current surge in Bitcoin's price is not dependent on ETFs or halving.

PlanB pointed out that the periods of high volatility described by MacDonald are precisely the main driver for further growth in the Bitcoin market.

Overall Asset Criticism

Interestingly, Bitcoin faces criticism not only from economists in TradFi. Colin LeMahieu, the developer of the 'feeless currency' XNO, considers the asset a 'technical failure.'

According to him, the Bitcoin ecosystem has several fundamental shortcomings, and therefore, it cannot be global.

Another, yet more radical opinion was shared by New York Times columnist Robert Memers. He believes that Bitcoin, along with other crypto assets, is only useful for manipulation and funding illegal activities.

Like Schiff, he believes that the current surge in the asset's value followed by its stabilization is the 'last gasp' of Bitcoin.

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