Bitpay CCO: Bitcoin could hit $ 45,000 in a month
Will the institutions hold Bitcoin for years, as was initially thought? Or will they sell for a quick buck?
More and more mainstream giants have invested money in Bitcoin in the past few months
Some speculate that these companies will want to hold their Bitcoin investments for years. Bitpay’s commercial director is not so sure. He believes these companies could sell their holdings earlier than originally planned if the price continues to rise.
„Many institutional buyers have bought in at $ 20,000, so that would be my lower limit for this could Bitcoin go as far down,“ said Sonny Singh in an interview with Bloomberg on Monday after Bitcoin slightly decreased is.
„All of these shoppers who bought in were like, ‚Oh, we’ve been on Bitcoin for three to five years now.‘ That’s great, but I think if Bitcoin hits $ 45,000 in the next month or so, I think they say, ‚Wow, we’ve just earned double that. We don’t have to wait these three years, let’s sell some of them now.‘ “
Big players‘ interest in Bitcoin increased in the second half of 2020 when companies like MicroStrategy, Square, and MassMutual invested significant sums of money in Bitcoin
„I spoke to someone who works at Skybridge,“ said podcaster Peter McCormack in a recent interview . „He said at MassMutual you need to understand that while the company put in $ 100 million, it wasn’t a lot of money for them,“ said McCormack. „You don’t want to sell next year, or in two years or in five years.“
However, Singh has made an argument to the contrary. Institutional sales could spark a new wave of BTC sales. „Then you start to see a pressure of $ 200 million in sales orders that the industry has never seen before,“ said Singh. „That could cause a catapult-like event that could cause the price to go down pretty quickly. And it could go from 45,000 to 40,000 to 35,000 down to 30,000 or similar levels, but I think the lower bound would be at $ 20,000.“
Speaking of a current lack of BTC selling pressure, Singh said he saw little resistance to BTC spiking up to $ 40,000 or $ 45,000 „in the next month or so“.