After a sharp decline in 2022, Bitcoin has shown a significant rise year-to-date. Meanwhile, it has been trading in a range between $20,000 and $30,000 for the past few months. Thus, the leading cryptocurrency is trying to get back on its feet. In this environment, a financial expert says that the conditions are in favor of the leading cryptocurrency.
“The developments have created a perfect storm for Bitcoin!”
In an interview with finance expert Dave Weisberger, CoinRoutes CEO points out a number of corporate developments. He also says that macroeconomics has created a “perfect storm” for BTC to break out of this consolidation range. “We are literally seeing perfect storm conditions for Bitcoin,” Weisberger said. “It provides protection against trusted institutions,” he says.
The financial expert cites a number of factors for this perfect storm for Bitcoin, including ongoing distrust of trustworthy institutions like banks and governments and the current macro environment characterized by rising interest rates and inflation. He also cites Bitcoin’s increasing institutional adoption as a key reason. CoinRoutes CEO suggests that these factors will come together to increase the BTC price in the long run. However, he notes that Bitcoin is still a volatile asset. It also underlines that its price can fluctuate significantly in the short term. At one point in the interview, Weisberger notes that the halving event will likely have an impact on prices next year.
Is Bitcoin a risky or risk-free asset?
Dave Weisberger also discusses whether Bitcoin (BTC) is a risky or risk-free asset. He says BTC has historically been a risky asset. That means it tends to move together with other risky assets such as stocks. However, he believes that the leading cryptocurrency has become more of a risk-off asset over the years, meaning it is seen as a safe haven during times of economic turmoil. “In the long run, this is a massively asymmetrical upside risk-off play,” says Weisberger.
With these words, Weisberger shows a bullish trend in BTC in the long term. He believes Bitcoin (BTC) is the future of money and will eventually be used as a global currency. The financial expert also claims that Bitcoin will surpass gold in value at some point.
Finance expert: Do not act with herd mentality!
cryptokoin.comAs you can follow from , crowd psychology is quite common in the crypto market. Interestingly, Dave urges investors to stay away from “crowded trades” by simply following what the majority of the market is doing. In this context, the financial expert says the following, including Bitcoin:
I don’t like crowded transactions. Crowded transactions always worry me, and I always advise people that if you’re following the entire herd because you hear everyone else is doing ‘x’, ‘x’ is probably not the right thing to do.
However, Weisberger says that despite the bullish trend, Bitcoin is still a relatively new asset class. He also notes that it’s important for investors to do their own research and understand what they’re putting their money into before investing.
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