Connect with us

Bitcoin

Bitcoin May Still Surge Above $100,000 By End of 2021: Chainalysis CEO

Published

on

Head of the Chainalysis company believes that Bitcoin is still early and it can exceed $100,000 by the end of the year, here’s why

Michael Gronager, CEO of Chainalysis and co-founder of Kraken, believes that Bitcoin may still go past the $100,000 level by the end of 2021 as adoption expands and regulatory clarity gradually appears.

He has also touched on the El Salvador topic related to Bitcoin and offered a reason why BTC has been growing in the past week and has retaken the $50,000 level twice. Gronager has spoken about that on Bloomberg TV.

Advertisement
9456_0
Image via Bloomberg TV

“Ethereum is dragging other cryptos up”

Gronager reckons that the main driver of the Bitcoin price recently has been Ethereum that has been rising after the London hard fork implementation on August 5. The major upgrade has made the second biggest blockchain one step closer towards Ethereum 2.0 and switching to Proof-of-Stake and it has allowed for burning ETH fees. As per the recent blockchain data over 164,000 ETH has been incinerated as of now.

Along with Ethereum, other cryptocurrencies have been going up, the Chainalysis CEO stated, including Bitcoin. Solana (SOL) reached an all-time high $145 a few hours ago and ADA soared to the $3 level. But Cardano’s native coin has been growing on the upcoming Alonzo launch and the release of the test capability for deploying smart contracts.

Ethereum has been pumping on the growing popularity of NFTs and ETH tokens getting burned. Besides, according to the data shared by Santiment, investor focus has been largely shifting from SOL to Ethereum.

El Salvator and BTC government regulation

Michael Gronager also mentioned the positive impact of El Salvador adopting Bitcoin as a legal tender, even though around sixty-five percent of the population claim they will not want to get paid in BTC.

Advertisement

Gronager has called that a normal resistance to innovation in finance by average people and named other countries where Bitcoin has been adopted – Vietnam, India, Ukraine, Pakistan, etc.

Michael opined that people in El Salvador or any other given small country are likely to cling what is simple and what they are used to, like the USD, that they hardly know what Bitcoin is and how it works. But eventually when the government adopts it, they will see that using BTC is as simple as USD, so he is not concerned too much about it.

As for governments’ attitude to BTC, Gronager believes that regulators, such as the US SEC, start seeing that Bitcoin is actually transparent rather than anonymous and will likely start using it in the future as a better medium of exchange and an investment platform.

Advertisement

“Bitcoin could reach above $100,000 by the year’s end”

As Kraken co-founder, the Chainalysis CEO has agreed with the Kraken chief Jesse Powell, who believes that “the moon is a bearish case for Bitcoin” and it is likely to go to “other dimension”.

By the end of the year, Gronager agrees with Powell that Bitcoin may go past the $100,000 mark. He stated that it is currently a bull market and bull markets for such cryptos as Bitcoin, Ethereum and other top ones are largely powered by bear markets when a lot of interesting things gets developed to make  bull markets make a stronger reappearance.

News Source

Advertisement

Bitcoin

Bitcoin Drops as China Declares Crypto-Businesses Illegal

Published

on

  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

Advertisement

Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

Advertisement
Continue Reading

Bitcoin

Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

Published

on

Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

Advertisement

“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

Advertisement

In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

Advertisement

However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

News Source

Advertisement
Continue Reading

Bitcoin

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Published

on

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

Advertisement

“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

Advertisement

If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

Advertisement

“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

News Source

Advertisement
Continue Reading

Trending