Leading crypto expert of global investment manager VanEck believes $30,200 is a critical level for Bitcoin’s future price action.
VanEck’s Head of Digital Assets Gabor Gurbacs shared his comments on the current Bitcoin price drop and his investment in MicroStrategy’s flagship cryptocurrency with his followers on Twitter.
Warning BTC holders of a potential drop, Gurbacs said, however, that it all depends on which direction Bitcoin moves from its current position.
“There Could Be A Serious Dissolution Towards $20,000”
Gurbacs took a similar view to the prediction of Peter Schiff, an anti-Bitcoin and gold lover, published on Friday, saying that if Bitcoin drops below $30,000, a sudden collapse is likely.
Gabor Gurbacs says that if it goes below $ 30,200, there is a possibility of BTC falling to $ 20,000, and he believes that the level of 30,200 is an important level for BTC. He also points out that this level is the average price of a total of 124,000 Bitcoins currently held by MicroStrategy.
Alongside this, MSTR has also dropped more than 31 percent to date, meaning the company has lost the gains it made from BTC last year.
Overall, Gurbacs notes that the way BTC behaves this weekend could determine what happens to the markets on Monday.
MicroStrategy’s 124,000 Bitcoin stash is probably valued around $30,200 per coin on average. I think that’s one important floor. If we dip below $30,200, there could be some serious unwinding toward $20,000. Bitcoin this weekend may drive what happens to markets on Monday.
— Gabor Gurbacs (@gaborgurbacs) January 22, 2022
Gurbacs also explained that there is currently too much liquid capital in the market as financial institutions want to invest. Many of these companies did not buy while BTC was trading at $10,000 and as a result missed the rally, where it reached an all-time high of $68,000. As a result, VanEck’s crypto director assumes that these companies will be able to seize the opportunity and jump on the Bitcoin train while the price is low this time around. He says this is because central banks are printing large amounts of money, inflation is rising, and many investors do not trust bonds under current market conditions.
I’d also note that there is an unprecedented amount of liquid institutional capital that’s looking to allocate. Many institutions missed out on the $10k to $60 rally that now can jump in. CBs printed trillions, inflation is high & many mistrust bonds. The upside/rally may get wild!
— Gabor Gurbacs (@gaborgurbacs) January 22, 2022
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.