Bitcoin could hit fresh all-time highs this week, which will bring upside to other cryptocurrencies, particularly those directly involved in fintech development.
This is the bullish prediction from Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations.
The ultra-bullish prediction comes as prices are on an upward trajectory and as Australia’s regulator, the ASIC, has become the latest watchdog to approve spot ETFs in the world’s two largest cryptocurrencies, Bitcoin and Ethereum.
Mr Green comments: “It’s taken a week or so longer than the Bitcoin bulls would’ve liked, but overnight on Sunday the world’s largest crypto took off again.
“It reclaimed its previous high of $64,900 from April and is closing in on its all-time high spot price of $66,000 from 19 October.
“Bitcoin will maintain its strength and is likely to shoot further this week, possibly hitting fresh all-time highs, as this current ‘take off’ generates further interest and momentum, attracting even more retail investors.”
He continues: “In addition, Australia’s securities watchdog has followed other global regulators, by giving the green light to the highly anticipated spot exchange-traded funds (ETFs) in a move that has provided a framework for other countries to follow suit.
“This move – especially when other regulators do the same, which they will – will mean that not only more retail investors will pile in but, crucially, more institutional investors such as family offices, hedge funds and real money asset managers will further increase their exposure into digital assets.
“They will bring with them unprecedented levels of capital and stability to the famously volatile crypto market. This will further drive prices skywards.”
The deVere boss goes on to add that the U.S. Securities and Exchange Commission (SEC) would be the “tipping point” in regard to ETFs.
“I believe that the Wall Street’s top regulator will eventually approve a spot Bitcoin ETF.
“A U.S.-based spot Bitcoin ETF would give the sector an unseen level of legitimacy and act as the ultimate tipping point for the market as it will allow corporates to buy and sell quickly and have direct exposure to the crypto itself, unlike with a futures-based ETF.”
As Bitcoin moves towards fresh all-time highs, other cryptos can also be expected to move to the upside, says Nigel Green. His observation follows Solana and Ether both hitting record highs last week.
“Bitcoin’s gravitational pull on other digital assets will show itself again this week, pulling up other major cryptocurrencies as it maintains its own strength.
“We can expect those cryptos involved with fintech development, such as Ether, Solana and Cardano, to do particularly well.
“Bitcoin is just the start of the fintech revolution which is redefining and reshaping the way that all financial services are delivered.”
He concludes: “This is going to be another good week for crypto investors as interest and demand, as well as regulatory recognition, take flight again.”
MicroStrategy Adds 7,002 Bitcoin to Portfolio
Yet again MicroStrategy, an Amereican business intelligence company has purchased an additional 7,002 Bitcoin worth $414.4 million to its digital asset portfolio, summing its total bitcoin asset to $3.57 billion.
The CEO of MicroStrategy, Michael Saylor made the purchase announcement on Monday via a Twitter post.
He tweeted, “MicroStrategy has purchased an additional 7,002 bitcoins for ~$414.4 million in cash at an average price of ~$59,187 per #bitcoin. As of 11/29/21 we #hodl ~121,044 bitcoins acquired for ~$3.57 billion at an average price of ~$29,534 per bitcoin”.
MicroStrategy currently owns 121,044 BTC valued at $3.57 billion that were acquired at an average price of $29,534 per bitcoin.
At the time of writing, data from Kucoin shows that Bitcoin is trading at $56,490 per coin. This implies that Microstrategy’s total bitcoin asset is worth over $6.8 billion.
On Friday, Saylor tweeted, “Bitcoin offers better inflation protection than gold and is growing faster than big tech.”
Saylor believed that Bitcoin (BTC) “is the only property you can truly own, as well as the first technology capable of granting property rights to everyone on earth and In time, we will come to understand that it is concentrated energy in digital form and critical to the progression of our civilization.”
Despite some countries showing little to no adoption to digital assets, Saylor believed that Bitcoin has a potential to become a $100 trillion asset class. He said “digital gold is going to replace gold this decade.”
The MicroStrategy CEO further said the company is not troubled with the ongoing discussion on crypto regulation, noting that it will affect security tokens, decentralized finance (defi) exchanges, crypto exchanges, and other use cases of cryptocurrency that are not bitcoin. In his opinion, “bitcoin is unstoppable as digital property.”
IMF Discourages the Use of Bitcoin as Legal Tender
Global financial body, the International Monetary Fund has informed the public that bitcoin constitutes a high risk to consumers.
In giving this warning, the Monetary Fund made a reference to El Salvador’s recently announced plan to make the coin a legal tender, as the country sets plans to erupt a Bitcoin City which is funded by cryptocurrencies.
On Monday, the IMF released a statement where it referred to the decision made by El Salvador to make bitcoin a legal tender as risky. This was said in spite of the Fund’s admission that cryptocurrencies and other digital forms of money possess the potential to make payment systems much more efficient.
According to the financial body, bitcoin’s high rate volatility means its use as a legal tender opens up serious risks to financial integrity, consumer protection and financial stability. The body then encouraged the strengthening of the supervision and regulation of the new payment system.
In September 2020, El Salvador passed a law that granted bitcoin the status of an official legal tender side by side with the US dollar. This made El Salvador the first country in the world to recognize cryptocurrency officially.
Since then, El Salvador’s government has supported an e-wallet system known as Chivo, which allows El Salvador residents to engage in payments with bitcoin and convert the cryptocurrency to US dollars.
The financial body recognized the benefits of the system, which could augment financial inclusion, while supporting financial growth. The body however called for more legal defences for consumers, to protect them while countering money laundering and the financing of terrorism.
This warning arrived merely days after El Salvador revealed its plans to build the world’s very first ‘Bitcoin City’ which will receive its initial funding from bonds backed by cryptocurrencies. The city will contain commercial and residential areas, airports, restaurants, entertainment venues, and other amenities which are common to a metropolis.
It is still in the conceptual stage but the first bond offering is set for 2022, with construction to begin about two months after financing has been secured for the construction.
El Salvador Announces Plans for Bitcoin City
The President of El Salvador, Nayib Bukele announced on Saturday that the country has kicked off plans to build a new “Bitcoin City”. The new city will be built near a volcano, and will be funded by the cryptocurrency after which it is named.
Like any other city, it will have entertainment, usual services, residential areas, commercial areas, restaurants and even an airport. However, it will be built near the Conchagua volcano in the South-Eastern part of the country.
President Bukele announced that the city’s construction will begin as soon as 2022, and the city will not have any taxes apart from VAT (Value Added Tax).
El Salvador was the first country in the world to officially pass a law that allows Bitcoin to be accepted as a legal tender in the country. However, this move was not positively received by some members of the country’s population.
In September, thousands of the country’s citizens and/or residents hit the streets to protest against the law, showing their disapproval of the country’s decision. The protesters made known their fears that introducing the cryptocurrency into the country could lead to national instability. In order to allow citizens make use of the cryptocurrency, the country has also launched a bitcoin wallet.
Apart from the construction announcement, El Salvador also has plans to raise around $1 billion in a partnership with Blockstream, a digital assets infrastructure company. Half of the money will go towards buying bitcoin, while the other $500 million will go towards energy as well as bitcoin mining infrastructure, according to the government.
Mining is an energy-centric process of creating new bitcoin by solving cryptographic puzzles. The country’s government says that it plans on using geothermal energy obtained from the volcano to power the mining process.
Chief Strategy Officer at Blockstream, Samson Mow said that the bond has a five-year lock up which will take about $500 million worth of bitcoin off the general market for that time period. Blockstream also announced that those who invest in the bond will receive an annual special dividend for their investment.
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