Rob Koyfman, an ex-Vice president at American-based multinational investment bank and financial services company, Goldman Sachs, has opined that Bitcoin is primed for a big pick up after several adoptions by big firms in the past few months.
According to Koyfman who doubles as the founder and CEO of Koyfin, a marketing and intelligence firm, the action of the Fed to print more US dollars in a bid to boost the economy, might probably weaken the world’s reserve economy thereby bringing a significant boost to Bitcoin.
Although Bitcoin is trading at $9,333, which is about 0.69% rise at press time, Koyfman believes that Bitcoin is well-positioned to pick up on its own and that the weakness of US dollar will launch the cryptocurrency giant past its $20,000 all-time high.
It is worth mentioning that the US dollars had formed three distinct tops over the past 30 years, precisely in 1985, 2000, and most likely in 2020. But the decision of the Fed’s to prolong the Quantitative Easing (QE) might turn out to be pivotal for the USD, as a break below the present trend line affirms a major decline for Dollar.
However, in the opinion of a popular cryptocurrency lover and trader, Josh Rager, nothing much has changed in the price of BTC, and investors should expect the continuous price slump between the bulls and bear until one side captures the key level.
Meanwhile, crypto fraud detection firm Chainalysis has recently said in a report that more than half of Bitcoin in circulation is being held as long term investment and 60% resides with licensed custodians.
Chainalysis says looking at Bitcoin’s supply holistically makes it appear like digital gold. The firm notes that by long term investors, it means those that have not sold over 25% of their stake for several years.
While the report says retail traders, those who make below $10,000 deposits on exchanges, do 96% of Bitcoin transactions, professional traders are principally in control of the market liquidity and are responsible for 85% of Bitcoin values that are being sent to exchanges.