Bitcoin’s value is currently fluctuating in the $90,000-$95,000 range, witnessing a decline of over 10% from its peak value reached just under a month ago. This situation has led to a stark difference in opinions between traders and long-term investors. Traders are using their technical analysis tools to predict a further dip in Bitcoin’s value, while long-term investors remain confident that the cryptocurrency’s upward trend is far from over.
This unique dichotomy was highlighted by David Siemer, the CEO of Wave Digital Assets. Wave Digital Assets offers asset management services to high net-worth individuals and funds within the cryptocurrency sphere, including high-profile clients like Charles Hoskinson, CEO of Cardano.
According to Siemer, in his 14-year bitcoin investment journey, he has never seen such a split. He observed that traders are increasingly cautious and hedging their investments, while long-term investors remain highly optimistic.
Siemer went on to predict that there’s a high possibility of Bitcoin reaching $200,000 per coin within this year. He also believes that Bitcoin may reach $1 million per coin at some point in his life, albeit not in the next year or so. In his circle of savvy investors, there is a strong bullish sentiment and the expectation of significant developments in the next six months.
One of the key factors influencing this confidence is the proactive steps being taken by various jurisdictions across the globe in favor of cryptocurrency. Countries like the U.S., Russia, Singapore, UAE, South Korea, Japan, the Philippines, and several European nations are looking to embrace crypto, which Siemer believes will positively impact their private sectors.
The sudden surge of interest in the crypto industry is largely due to the overwhelming success of the U.S. spot bitcoin exchange-traded funds (ETFs). This success is driving financial institutions globally to develop innovative products, like multi-token yield funds, to compete effectively.
Siemer also mentioned the potential for new strategic Bitcoin reserves. Even if the U.S. doesn’t establish a reserve, Siemer believes several other countries likely will. He revealed that Wave Digital Assets is in discussions with seven states, including Texas, Ohio, and Wyoming, about the possibility of creating a reserve.
As for the U.S. federal government, Siemer thinks the chances of them holding Bitcoin reserves are slightly above 50-50, especially given their existing Bitcoin holdings worth nearly $19 billion. As per Siemer, the government simply needs to retain the Bitcoin and not sell it, a move which would be more acceptable to the tax base than purchasing an additional $10 billion worth of Bitcoin.
