Despite the cryptocurrency crash that caused Bitcoin (BTC) to plunge below $4,000 in March, Brendan Blumer says he’s optimistic that the crypto market will more than rebound.
The founder of EOS and CEO of Block.one says crypto’s status as an ultra-hard form of money that’s resistant to inflation is getting a spotlight in the current economic environment, as governments increasingly print money to combat the coronavirus crisis.
“The global macro environment has never before aligned the stars to highlight the value proposition of crypto quite like what we’re about to see in the next 24 months. Hold on to your seats.”
Blumer says that he believes investors are scared of getting stuck holding too much cash and will have to think differently about where to put their money.
In response to Blumer, Mike Novogratz, the founder and CEO of digital assets merchant bank Galaxy Digital, says he’s seeing increasing interest in the crypto market on his end.
Although Novogratz says he’s bullish, he has also implied that his patience with BTC is running thin. In a recent interview, the former Goldman Sachs partner alluded to his plan to exit the crypto market if the king coin doesn’t double in value over the next six months.
As for Blumer, according to a statement he made last month, BTC is targeting $250,000 no matter what happens to the traditional markets.
But technical analyst John Bollinger has a word of warning. The inventor of the widely-used Bollinger Bands indicator says that despite current price action, investors should realize that Bitcoin remains closely tied to traditional markets.
“It is really interesting to see BTC turned into just another risk-on, risk-off vehicle. Just another demonstration that in a real crisis all correlations really do approach one.”