$BTC’s Golden Age: Institutional Adoption Grows, Geopolitical Race Intensifies
KEY TAKEAWAYS
- Major corporations and governments are increasingly investing in Bitcoin ($BTC), potentially driving its price above $100K. Technical indicators also suggest price appreciation.
- $BTC could eventually replace gold as a store of value, reaching a $16T market cap.
- The new US administration is expected to revise current regulations and appoint pro-crypto officials.
$BTC broke a new record high of $97.9K this morning. Unlike the 2017 bull run, which was mainly driven by retail investments, this time, we see accelerated institutional and governmental adoption of $BTC.
CEO at Galaxy Digital Holdings Mike Novogratz notes many countries are buying $BTC in large volumes, which could further increase its value.
The 21st Century Gold RushNovogratz believes Trump's pledge to become the crypto president' helped him win the election and encouraged other global leaders to invest in $BTC.
While Novogratz thinks the probability of the US establishing a $BTC strategic reserve is low due to the tedious legislative processes it requires, he acknowledges the benefits it would bring.
Namely, the reserve could give the US a geopolitical advantage and make it a technology-first country.
Pondering $BTC's potential to replace gold as a store of value, Novogratz noted that the total market cap of gold currently sits at around $16T. If $BTC were to achieve parity with gold, its price would surge to approximately $800K.
Soon turning 60, Novogratz still owns gold but highlights the generational shift in investment preferences. Given that younger generations are more inclined to invest in digital assets, $BTC might match gold's market cap in the next decade.
Institutions across sectors like biopharmaceuticals, business intelligence, and tech are also adopting $BTC as a treasury asset.
For instance, Hoth Therapeutics bought $1M worth of $BTC as a hedge against inflation - a modest sum compared to MicroStrategy's $4.6B $BTC holdings.
Ripple CEO Expects Regulatory ReliefCrypto industry players have high hopes for Trump's presidency - specifically, Ripple CEO Brad Garlinghouse expects deregulation to ease compliance.
This includes replacing the Howey Test, currently used by the SEC to determine whether a particular token qualifies as a security, with an instrument addressing the sector's unique characteristics.
Another much-anticipated change is appointing a new SEC Chair, with potential candidates including Dan Gallagher, Teresa Goody, and Commissioner Mark Uyeda.
Garlinghouse notes that whoever becomes Trump's choice should work closely with Congress to resolve regulatory shortcomings. Trump also intends to appoint a crypto czar to coordinate the work of the SEC and Commodity Futures Trading Commission (CFTC).
Technical Indicators Are BullishSkeptics argue that $BTC has reached its peak and that further price increases are unlikely. However, $BTC's breakout from the ascending triangle pattern and Fibonacci extension levels indicate it could soon reach $100K.
On the other hand, a high Relative Strength Index (RSI) signals overbought conditions, which means $BTC may be due for a correction.
Regardless of the short-term performance of $ BTC, institutional and governmental adoption at scale suggests a bullish long-term outlook.
References- Mike Novogratz (X)
- Bitcoin Performance (CoinMarketCap)
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