CryptosRUs, also known as George, recently shared his views on the current Bitcoin crash. The CoinSpeech team collected the most important takeaways from his recent appearance. Find CryptosRUs’s new video below.
Understanding the Bitcoin Crash
Bitcoin has faced significant downward pressure recently, dropping from approximately $62,000 to $61,000. As George notes, this comes on the heels of several major market events. “Last week the German government sold $300 million worth of Bitcoin,” he explains, a surprising move given that such large sales typically occur over-the-counter to avoid market disruptions.
Mount Gox Distribution Fears
The impending distribution of $9 billion worth of Bitcoin and Bitcoin Cash from the Mount Gox trustee has also stoked market fears. “About 141,000 Bitcoin will be repaid to all creditors next month,” George highlights, noting that selling pressure from this event could disrupt Bitcoin’s price further. However, he remains cautiously optimistic: “If you understand Bitcoin, you know that this is temporary.”
The Miner Dilemma
The selling spree by Bitcoin miners adds another layer of complexity. “Bitcoin miners sold about 30,000 Bitcoin within a matter of a month,” George explains, attributing it either to survival tactics or plans for expansion. This selling has pushed miner reserves down to a 14-year low, a situation George deems “ultimately a good thing” for Bitcoin’s long-term prospects.
Institutional Faith in Bitcoin
Despite short-term volatility, institutional confidence in Bitcoin remains strong. George mentions that many big players, including Meta Planet and BlackRock, continue to accumulate Bitcoin. “Meta Planet just issued $1 billion worth of bonds to buy more Bitcoin,” he points out, demonstrating ongoing institutional belief in Bitcoin’s long-term value.
Predictions and Market Sentiment
George maintains that Bitcoin could still reach six figures by the end of this year. “Can Bitcoin still hit $100,000 by the end of this year? Yes, I still believe that’s in the works,” he asserts. He anticipates a significant move in Bitcoin around September or October, driven by a combination of factors including oversold territories and institutional buying.
Staying the Course
In conclusion, George emphasizes the importance of understanding the macro environment and staying the course. “Inflation will always be an issue, and governments and central banks still don’t know how to solve it,” he states. His advice for investors? “This is a golden opportunity to load up to DCA; continue to hold despite the short-term volatility.”