The CCO Of Bitpay Says Bitcoin Could Reach $45K For A Month, However, The Catch Is Still There

 

In recent months, more and more big giants have spent their capital on Bitcoin. While some speculate that they are planning to invest in Bitcoin for years, Bitpay’s Chief Trading Officer is not so confident. He expects that if their rates begin to increase, these businesses will sell their shares faster than initially expected.

“A lot of the institutional buyers bought in around $20,000, so that would be my floor for how far Bitcoin could go down,” Sonny Singh said, after a downward bitcoin price action, in an interview with Bloomberg on Monday.

“All those buyers that bought in, they said ‘Oh were into Bitcoin now for a three to five-year time horizon,’ which is great, but I think if Bitcoin hits $45,000 next month or so, they’re going to say, ‘wow we just made 2x, you know, we don’t need that three-year horizon anymore, let’s start selling some.'”

In the latter half of 2020, major player interest in Bitcoin started to grow, as companies like MicroStrategy, Square, and MassMutual placed substantial resources in Bitcoin.

“I was chatting to somebody who works at Skybridge,” said in a recent interview, the podcaster Peter McCormack. “He said the thing you need to understand about MassMutual — they’ve put in 100 million dollars but that’s not a lot of money for them,” McCormack said. “They’re not looking to sell next year, or in two years, or five years.”

However, the statement of Singh renders an opposite point. Institutional profits could stimulate a fresh wave of sales by BTC. 

“Then you start seeing selling pressure of $200 million sell orders come in, which the industry has never seen before,” Singh clarified. “That could cause a catapulting event to cause things to start going down pretty quickly and could see it go down from 45 to 40 to 35 down to 30 or things like that, but I think the floor would be $20,000.”

Most of the days that bitcoin is up, blockchain prices are tracking higher, as well. There’s a fundamental reason for this (as we’ll see in a moment). But other causes can affect equity prices. Indeed, crypto stocks have displayed little real connection to the price of bitcoin today. Some of them were up, some were down, and some exchanged horizontally.

Singh said he sees nothing standing against BTC in a way that reaches between $40,000 to $45,000 “in the month or so ahead” because of the lack of BTC market pressure at this moment. Click this link for more information.

Singh even predicted that national companies and even governments would jump into the Bitcoin train if the commodity soared at a large amount. He applied to the present situation of institutional investors where, a few years back, the very suggestion of companies buying bitcoin was unforgivable. Things are different today, as many large institutions have entered the Bitcoin sector.

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