A longtime Bitcoin bull and the founder of Galaxy Digital Michael Novogratz spoke about Bitcoin's future.
He explained that as cryptocurrencies become more widespread, rich baby boomers will be the next generation to come to the bitcoin market.
“It could be as much as a trillion dollars comes over the next year from that giant group of wealth." - declared Novogratz.
Baby Boomers are those who were born around the end of World War II until the mid-1960s. They were the main beneficiaries of the massive stimulus packages that pumped asset values in the wake of the 2008-2009 global financial crisis. Many of them see bitcoin as an asset that can significantly increase its value, as well as protect their savings from inflation caused by the massive printing of money.
"If you’re worried that the U.S. is printing too many dollars … you’re going to shift some of your savings into bitcoin."
- Michael Novgorats.
If the CEOs of JMP Securities and Galaxy Digital are not wrong, then in the coming months, huge amounts of money will begin to flow into the bitcoin market, and by the end of the year, their inflow will amount to $2.5 trillion. Now the capitalization of the first cryptocurrency is $1.2 trillion. If you add these two sums, then the capitalization of BTC by the end will reach $3.7 trillion, hence the price of bitcoin will be $177,754.
But since in free circulation, according to Glassnode, at the beginning of the year there were only 4.2 million bitcoins, a reasonable question arises: what exactly are the listed groups of investors going to buy? Everything that is available to them on the market today, taking into account all the bitcoins available on exchange wallets and in OTC, is a maximum of 4.2 million BTC.
If we subtract from the total emission of bitcoin, which is 18.6 million today, belonging to the class of illiquid 14.5 million, then the estimated price of bitcoin will be $711,000 by the end of the year. And this is without taking into account the money of other buyers, who, of course, are present in the market and their number is growing all the time. It is worth adding an element of common panic buying that can arise against the backdrop of the rapid rise in the price of BTC.
Last year alone, Grayscale Capital and other funds bought about 1 million bitcoins on the market. Under the above-mentioned scenario, no more than 1 million BTC will remain in free circulation by the end of the year.
Turns out, “To The Moon” is much closer than expected.
Thanks to Michael Novogratz for the tip.
Submitted March 31, 2021 at 06:53PM by SirFuckingLoin https://bit.ly/39wUD63
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