- BTC retested $60K amidst an escalation in Middle East tensions over the weekend.
Peter Schiff claims a drop below $60K will be risky for Bitcoin and its holders, including MicroStrategy.
The price of Bitcoin (BTC) dipped to $60,000 recently due to heightened Middle Eastern conflicts during the weekend, according to market observers. This amount is considered a significant psychological threshold for Bitcoin as it has rebounded from this point three times since March.
Although Peter Schiff noted some recovery from the weekend declines, he warned that a drop below $60,000 could lead to significant losses for Bitcoin and MicroStrategy.
“A support level of $60,000 is crucial for Bitcoin. If Bitcoin falls significantly below this point, it could lead to a powerful triple top formation. This might result in a drop in price down to around $20,000.”
The commentator explained how MicroStrategy would be affected if Bitcoin’s price dropped significantly to around $20,000 per coin.
If $MSTR pays that amount, they’ll incur a loss of approximately $2.7 billion on the 214,000 Bitcoins they bought for an average price of $34,000 each.
Bitcoin: Can Hong Kong ETFs counter geopolitical risks?
When I penned down these words, Bitcoin had regained its footing at $65K following vague news that the US might reduce Middle Eastern conflicts.
However, some market observers warned crypto enthusiasts that the situation isn’t yet clear-cut. For instance, Quinn Thompson, the founder of Lekker Capital specializing in cryptocurrencies, pointed out:
“People considering investing in cryptocurrencies based only on a potential large leverage correction or the resolution of the Middle East conflict may want to exercise caution.”
Despite the recent crash of Bitcoin, Galaxy Digital’s founder, Mike Novogratz, remained optimistic. He expressed his belief that Bitcoin would rebound.
“The price tag for wars is substantial…. Let’s hope we avoid a larger conflict, but following the danger period, Bitcoin is expected to continue climbing in value.”
Meanwhile, an analyst from investment firm VanEck reported that Chinese investors have been buying large quantities of gold in the past few weeks, causing its price to reach new heights.
With an imminent BTC ETF launch this week, the analyst believes BTC could go parabolic, too.
At VanEck, our top-tier gold team holds the view that gold’s dramatic surge can be largely attributed to robust purchasing by Chinese investors. With concerns over the instability of their real estate and stock markets, these investors are seeking out hard assets as a more reliable store of value.
If Hong Kong approves Bitcoin etfs, watch out.”
The approval of Hong Kong’s Bitcoin ETFs and the ongoing Middle Eastern tensions are presenting a quandary for BTC prices. It is yet uncertain which influence will cause more price fluctuations in the immediate future.
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2024-04-15 13:11