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In his assessment, Back pointed out that Bitcoin’s ability to withstand challenges and its adherence to historical patterns indicate a potential upward trajectory. This optimism is especially notable in the face of macroeconomic uncertainties and increasing institutional interest in cryptocurrency. Furthermore, with the upcoming halving event in 2024, Back believes Bitcoin could experience a significant boost, potentially reaching new highs around $100,000.
Adam Back, Blockstream CEO, anticipates a resurgence for Bitcoin (BTC) in 2024, driving the leading cryptocurrency towards $100,000. In a recent interview, the influential cryptographer highlighted that Bitcoin is currently trailing below the historical price trend line observed during past mining reward-halving events.
Bitcoin undergoes block reward halvings approximately every 210,000 blocks, reducing the reward given to miners from 6.25 BTC to 3.125 BTC. Back suggested that considering the average trends of previous market cycles and halvings, Bitcoin’s current value lags behind widely accepted projections. The decline in BTC’s price is attributed to various factors affecting both traditional financial markets and the cryptocurrency space.
Blockstream CEO Adam Back: Bitcoin ETFs Could Propel Price to $100,000 https://t.co/nky0KT784B #BitcoinNews #AdamBack #Bitcoin #Blockstream
— DeFiBloke (@DeFiBloke) December 18, 2023
Amidst the challenges of the past few years, including the impact of COVID-19, extensive quantitative easing, geopolitical conflicts affecting power prices, and the strain of inflation on individuals and businesses, Adam Back highlighted the resilience of Bitcoin as a potential hedge in such tumultuous times.
According to Adam Back, navigating market challenges has led investment managers to manage risks and absorb losses, occasionally resorting to selling more liquid assets, particularly Bitcoin. This echoes historical trends observed with assets like gold and has contributed to Bitcoin’s performance in recent years.
Looking forward to 2024, Adam Back noted that many of the macro events that negatively impacted Bitcoin’s price have either subsided or been resolved. This positive shift is evident in Bitcoin’s recent price surge from November 2023 onwards.
Adam Back Maintains Confidence in Bitcoin Reaching $100,000 Despite Previous Market Challenges
Adam Back, the Blockstream CEO, remains confident in his prediction that Bitcoin will reach $100,000 in the upcoming market cycle despite challenges posed by macroeconomic factors. He suggested that had it not been for these macro factors, Bitcoin might have already achieved this milestone. Additionally, Back referred to the “stock-to-flow” model developed by the pseudonymous former institutional investor PlanB.
The “stock-to-flow” model indicates a potential upside for Bitcoin in 2024. According to Adam Back, this model suggests that savvy Bitcoin investors historically purchased BTC six months before a halving event and sold during significant price surges in the 18 months following the reward reduction.
“People thought it was a bit of a crazy assertion that we might get to $100,000 pre-halving because I said it when the price was around $20,000,” Back said.
He highlighted that Bitcoin’s price repeatedly hitting $44,000 in December 2023 suggests that his earlier prediction may not be as far-fetched as some initially believed.
The approval of spot Bitcoin exchange-traded fund (ETF) applications by the United States Securities and Exchange Commission (SEC) holds significant potential, as it could unlock opportunities for major fund managers like BlackRock and Fidelity. Currently restricted from direct investments in assets like Bitcoin, the green light for these ETFs could pave the way for substantial institutional involvement in BTC-backed products.
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