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A crypto hedge fund analyst is outlining his views on where the price of Bitcoin (BTC) is heading in the long run.
Willy Woo of Adaptive Capital says he’s not surprised to see the leading cryptocurrency dump alongside traditional markets amid widespread fear, uncertainty and doubt about the global economy.
He’s not convinced that Bitcoin has hit a bottom. However, Woo believes Bitcoin’s fundamentals remain strong, fueled by interest from Millennials, who famously would rather visit the dentist than listen to their banks, according to a 2014 survey.
“Dump then moon. We are undergoing flight to safety right now, BTC is looking for its bottom. But know that once the bottom is in there are strong bullish pressures ahead. It’s this economic environment in the years ahead that Bitcoin was built for.
The inheritance from boomers to millennials is tipped to create the next bull cycle. This crisis is a catalyst for this effect as heart breaking as it is. $68T of wealth that will pass hands is now accelerated. Millennials love crypto, doesn’t take much money to move the needle.”
Despite his optimism, Woo says BTC is now in uncharted territory and warns anything can happen with the extremely risky and notoriously volatile asset.
Woo references a phrase coined by former US Defense Secretary Donald Rumsfeld, who in the aftermath of 9/11 cited “unknown unknowns” as uncalculated risks from future events that are so unexpected they have never been considered.
“We should also take caution… In the 10 year price history of BTC it has only existed inside a macro bull market, we have zero data on how it behaves in a macro bear market. This is the known unknown. I wonder about the unknown unknowns.”
[adinserter block="1"]Three Arrows Capital CEO Su Zhu also backs the notion that Bitcoin will shine in the long run as central banks search for new and increasingly extreme ways to stimulate markets and keep credit flowing.
https://twitter.com/zhusu/status/1240193548454002688
Not all analysts in the crypto space are as optimistic as Woo and Zhu.
Veteran technical trader Peter Brandt appears to be off the Bitcoin train completely. After tracking Bitcoin’s parabolic potential to hit $100,000 for months, Brandt says he believes it’s now more likely that BTC will head to zero.
