Tone Vays thinks that investors have another chance to buy bitcoin at its lows, given that he feels the number one cryptocurrency will approach $100,000 in the coming year.
Bitcoin ready to rise
Vays was speaking to Kitco News at the Future Blockchain Summit at the Dubai World Trade Centre. He holds the view that the crypto winter is close to thawing, and believes that stocks will also see a reversal to the upside.
The veteran trader says that bitcoin can’t stay in a bear market indefinitely precisely because of the way it was engineered to function. He mentioned the halving cycle, the fact that people had taken their bitcoin off exchanges, the growth of wallets holding just one bitcoin (which he predicts will break 1 million wallet holders soon), and the amount of bitcoin locked up on the Lightning Network, among other fundamentals.
The trader is himself in cash right now, and he advises other investors to do the same, at least for the short term. However, for seasonality reasons, the upcoming midterm elections, and the fact that interest rates are causing havoc in the bond market, Vays thinks that money will have to go somewhere, and he believes that this is the stock market and Bitcoin.
Possible flash crash
He feels that there is still a chance of a “flash crash” just in order to “get everybody scared”, but says that should this happen he will be entering strong at the $14,000 area. On the other hand, should the $20,000 level hold then the trader said he would be confident that bitcoin would go higher from there.
Vays says that should a crash for bitcoin materialise then there will be a lot of people who might have missed the last bull run waiting to get in at the $14,000 level. He said that he would be very surprised if the price went lower than that, and would fully expect bitcoin to shoot straight back above $20,000.
Why Bitcoin will be successful
According to the analyst, bitcoin has properties that guarantee its success. He refers to the belief of many that “bitcoin is the first non confiscatable asset in human history.”
He cites the American government freezing and confiscation of Russian government funds and those of individual Russian citizens. He also points to how the Trudeau government in Canada froze donations that were destined to help the trucker’s cause.
He states that this is not possible with bitcoin, saying that it is censorship resistant and that you can send it to anyone without any barriers.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Sourced from cryptodaily.co.uk.
Written by Laurie Dunn on 2022-10-20 14:33:16.
