Last Week In Bitcoin is a new segment covering the week that occurred in Bitcoin, with all the important bits and some analysis.
Despite what the charts and current price may say, last week was a bullish week in Bitcoin. Billionaire Ray Dalio confirmed he is holding bitcoin, activist investor and former bitcoin doom prophet Carl Icahn expressed interest in pursuing crypto in a “big way” and Texas pushed through a bill that will provide a legal framework for bitcoin in the state, paving the way for Texas to become a crypto hub. China and Iran cracked down on bitcoin mining for the umpteenth time, and prominent investors Elon Musk and Michael Saylor announced formation of their Bitcoin Mining Council.
A Chart To Consider
The chart above, courtesy of Bloomberg’s Global Macro Investor platform, compares bitcoin’s performance between 2010 and 2013 to between 2016 and now. As you can clearly see, we’re still overdue for a decent bull run which could likely peak somewhere around $400,000.
Of course, there are a lot more eyes on bitcoin this time around compared to a decade ago. The fear, uncertainty and doubt has increased as the media, billionaires, and many others pile on the anti-crypto sentiment. As we’ve seen over the years, bitcoin is a global community and its sole focus is a decentralized financial system where the power is in the hands of the people. Some might say even negative news is good news as it will introduce new people to the idea of bitcoin, and as they research it they may very likely decide to invest themselves.
Bullish: Short Term
Prominent investors are piling into bitcoin almost weekly now. Last week’s news that Ray Dalio holds bitcoin and Carl Icahn is interested also, just reiterates that no one can ignore bitcoin as a logical investment anymore. As prominent investors come on board bitcoin is perceived as even more legitimate to former skeptics which often has a positive effect on the overall price, further fueling bull runs. This current run could likely chart somewhere in the region of $400,000 over the next year, as shown in the chart above, and discussed in my previous piece comparing bitcoin’s performance after each halving. The most recent halving took place last year, kicking off the current bull market.
Bearish: Long Term
In an almost ironic twist, my reasons for being bearish long-term are almost the same as why I am bearish short-term. Billionaire investors and public companies joining the bitcoin bandwagon is both good and bad for price action. If bitcoin does eventually hit anywhere close to $400,000, the billionaires are likely to liquidate their positions with a fat short-term profit in hand. Similarly, public companies having seen a tremendous return on investment will likely see activist investors push to sell their holdings and pay out dividends to investors. Microstrategy should be safe as Michael Saylor controls most of the voting rights, but what about the rest of the publicly…