Bitcoin’s Resilience in a Turbulent Market

Prominent entrepreneur and venture capitalist, Mark Moss, offers insights into why a significant dip in the cryptocurrency market, particularly Bitcoin, is improbable. Despite recent declines in Bitcoin’s value, Moss holds a positive outlook on its future, contrasting sharply with the gloom seen towards the end of 2021.

Could Cryptocurrency Collapse Be a Myth?

There is a widespread assumption that Bitcoin might touch new highs close to $100,000 before settling back to $50,000, though the days of it dropping to $20,000 seem behind us. However, this potential retracement could adversely impact altcoins.

According to Moss, the decreased volatility in Bitcoin, influenced by the emergence of Exchange-Traded Funds (ETFs), lowers the odds of drastic corrections. As Bitcoin remains above the $40,000 threshold, ETF investments offer a strong foundation.

What Keeps Bitcoin (BTC) Afloat?

Moss asserts that any prediction of extreme downturns for Bitcoin is unfounded, especially if the four-year cycle theory languishes. The recent stability subverts traditional expectations of a crash, evidenced by consistent whale accumulations countering short-term selling pressures.

“You see ETF demand ten times greater than the miners’ supply to the market. Thus, there’s a significant supply-demand imbalance, met by OG whales opening their massive wallets, which isn’t about new supply. Hence, even halving the supply from here would make no difference.”

Recent trends show that ETF demand often outpaces the daily Bitcoin supply. If not for the major selling observed in early 2024, this pattern would likely continue. Notably, even amidst such sales, 95% of ETF investors have maintained their positions.

Moss introduces the concept of a reverse collapse where assets gain in value rather than lose it. In such a context, traditional stock, gold, housing, and even everyday commodities rise, yet living standards diminish due to inflation.

“What we are witnessing now is a reverse collapse, not a fall, but a rise. We observe prices moving away from us, with the S&P 500 climbing, Bitcoin rising, gold appreciating, homes elevating, and even meat, milk, eggs, and holidays increasing, yet the result remains unchanged, eroding the quality of life I used to enjoy—a classic inflationary collapse.”

Inflation and continual monetary expansion by governments dilute money’s purchasing capacity. Moss suggests these dynamics fuel demand for limited assets like Bitcoin, leading to appreciation.

– Stablecoin growth is pivotal for the U.S. to sustain the dollar’s global influence.
– Bitcoin’s scarcity underpins its promising long-term value trajectory.
– BRICS actively acquiring gold undermines dollar supremacy.

Global economic shifts such as BRICS countries acquiring gold and increasing investments in stablecoins play into Moss’s assertion of Bitcoin’s potential for enduring value growth. As the U.S. fosters stablecoin development, it indirectly strengthens Bitcoin’s standing, thereby propelling its positive outlook.