In a recent analysis from CryptosRUs, host George dives deep into the prowess and current state of Bitcoin, elaborating on its market movements and offering insights into its potential future. CoinSpeech has curated the most important points from his appearance.
You can find the CryptosRUs’s new video embedded below.
Recent Market Behavior
George began by noting some short-term weakness in Bitcoin, highlighting that the asset touched the $64,000 mark but showed signs of bouncing back. “I think Bitcoin will probably bounce off this 637 mark,” he remarked. Despite the volatility, George emphasized the importance of zooming out to appreciate Bitcoin’s long-term performance.
Fiat and Inflation
Highlighting Bitcoin’s resilience against traditional fiat currencies, George pointed out: “Year to date, Bitcoin is still up 41% when compared to USD and up 46% compared to Euros.” This performance is owing to continuous fiat fluctuations, where all fiat currencies are losing their purchasing power due to inflation. “That’s why we have Bitcoin. The average fiat loss across 2.6 billion people is 45% over the last four years.”
Institutional Investors’ Behavior
George revealed a fascinating metric indicating inflows to accumulation addresses, which represent long-term holders or “whales.” He stated, “This chart shows inflows to accumulation addresses basically long-term holders or whales… Who’s actually selling? Well, paper hands, you could argue retail investors, or maybe the miners.”
Despite the recent ETF outflows and selling pressures from Wall Street, the long-term holders remain steadfast, continuing to accumulate Bitcoin.
Bitcoin ETFs vs. Gold ETFs
One intriguing point was the comparison between Bitcoin ETFs and gold ETFs. George recalled, “Gold was stagnant for decades before spot ETFs were approved… Bitcoin did this in just five months.” He indicated that Bitcoin’s institutional demand is much stronger and faster compared to gold, potentially foreseeing a robust future for Bitcoin ETFs.
Bitcoin’s Historical Performance
Looking at Bitcoin’s historical returns, George highlighted an astonishing fact: “Bitcoin gives 150% annualized returns and in total since the beginning, 22 million percent.” This eye-catching statistic underscores why Bitcoin is considered one of the highest yielding assets, even when considering the occasional bear years.
He stressed the importance of a long-term perspective: “Imagine if you could buy anything else that was guaranteed 150% returns year after year after year… it’s too good to be true maybe it’s a Ponzi maybe it’s a scam but you know what exists? Bitcoin.”
Future Market Predictions
Addressing future trends, George mentioned a possible parabolic rise: “Eventually when we get out we get in that banana zone… when we get there it’s going to be absolutely crazy.” He also touched upon Ethereum, predicting a potential rise to $10,000, especially with the introduction of new combined Bitcoin and Ethereum ETFs.
Despite some short-term volatility and Wall Street skepticism, the data and historical performance strongly favor a bullish long-term outlook for Bitcoin and other major cryptocurrencies.