As a seasoned researcher who has witnessed the evolution of digital currencies since their inception, I find it fascinating to observe the unique dynamics that govern Bitcoin’s market behavior. Unlike traditional stocks, Bitcoin seems to elicit a different response from investors, as suggested by Bitwise Invest CEO Hunter Horsley and others.
As an analyst, I find myself observing that Bitcoin has recently reached unprecedented peaks, yet these developments have not sparked apprehensions of overvaluation among investors in the same manner as traditional stock markets tend to do. This insight comes from a key executive within the cryptocurrency sector.
According to Hunter Horsley, CEO of Bitwise Invest, Bitcoin stands apart from traditional assets because when a company’s stock increases, its valuation multiplier also rises. This multiplier reflects not only the company’s assessment but also an aspect of its financial performance. In simpler terms, this means that as a company’s stock price grows, so does its overall value and financial success, as measured by this multiplier. However, with Bitcoin, things work differently since it isn’t tied to any company or financial performance.
People see rising BTC price as ‘more likely to succeed’
In the context of stocks, it’s often said that when something reaches a particular level, people start thinking it’s overpriced and lose interest. This continues until the price decreases. Horsley clarified this concept.
In simpler terms, Horsley emphasized that an increase in Bitcoin’s price leads people to believe it has a higher chance of success, making it even more desirable due to its potential value.
“So it’s likely to go up even further,” he claimed.
Currently, as of when this information was released, one Bitcoin (BTC) is being exchanged for approximately $77,310. This price represents a 13.52% rise compared to its value from the previous week, based on data provided by CoinMarketCap.
Throughout the trading week leading up to the U.S. presidential election in November (specifically from Nov. 4th to Nov. 8th), there were approximately $1.63 billion invested into Bitcoin ETFs based in the United States, as indicated by data provided by Farside.
Many Bitcoin users seem unfazed by concerns about overvaluation, as the cryptocurrency consistently trades above its previous peak of $73,679, which it reached in March.
According to Robert Kiyosaki, the author of “Rich Dad, Poor Dad,” he plans to acquire an additional 27 Bitcoins, regardless of their price, by November 2025. He made this announcement on his post dated November 9th.
“Today, I own 73 whole Bitcoins. A year from now, I intend to own 100 Bitcoin…regardless of price.”
“I bought my first Bitcoin at $6000, and I continue to acquire at $76,000,” Kiyosaki added.
10T Holdings founder Dan Tapiero stated, “People still view it as a fledgling investment, but it’s actually matured beyond this.” In October, Tapiero predicted that the price of Bitcoin would reach $100,000, regardless of the outcome of the US election.
Positive momentum is expected to continue for Bitcoin
As a researcher, I’ve observed that when a company chooses to issue shares through an At-the-Market (ATM) offering, the equity valuation could potentially be diluted. However, this is not applicable to Bitcoin, as it does not operate on a similar issuance model.
In simpler terms, they pointed out that when the value of Bitcoin increases, nobody can produce more of it. The only method to augment its supply is by increasing its price.
After hitting a new record high on November 5th, experts have suggested that Bitcoin, based on their in-depth analysis, doesn’t appear to be showing any indications of becoming overly heated or experiencing a bubble.
On November 7th, Alex Thorn, who leads research at Galaxy, expressed his viewpoint that “from a fundamental standpoint, the market doesn’t seem excessively hot.
According to analyst Aurelie Barthere from crypto analysis company Nansen, Bitcoin reaching a new record high with substantial trading activity suggests that there’s strong, continuing optimism in the market after the recent elections.
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2024-11-10 07:20