Blockstream CEO Adam Back is optimistic about Bitcoin’s resurgence in 2024, foreseeing a potential surge that could drive the leading cryptocurrency to the $100,000 mark. In a recent interview, the renowned cryptographer, and architect of Bitcoin’s proof-of-work algorithm, highlighted that Bitcoin is currently tracking below the historical price trend line seen in previous mining reward halving events.
Adam Back Predicts Bitcoin Price Surge to 100,000 Dollars, Citing Impact of ETFs
Bitcoin’s block reward halvings, occurring every 210,000 blocks, entail a reduction in the reward given to miners from 6.25 BTC to 3.125 BTC. Back suggested that, when analyzing the average trends of past market cycles and halvings, Bitcoin’s current valuation falls behind widely accepted projections.
Several factors have contributed to the decline in BTC’s price, affecting both traditional financial markets and the cryptocurrency space. Back referred to the challenges of the past years, citing “biblical pestilence and plague,” including the impact of COVID-19, quantitative easing, and geopolitical tensions affecting power prices. Inflationary pressures have also played a role, with companies facing bankruptcy amid these market challenges.
These adversities have significantly influenced portfolio management and investment strategies, prompting investment managers to navigate risks and losses, sometimes resulting in the sale of more liquid assets, including Bitcoin.
Looking forward to 2024, Back expressed that many of the macro events negatively affecting Bitcoin’s price have either subsided or been resolved. This positive shift is evident in Bitcoin’s recent price upswing since November 2023.
“The wave of contagion, the companies exposed to Three Arrows Capital, Celsius, BlockFi, and FTX — that’s mostly done. We don’t think there are many more big surprises in store,” remarked the seasoned crypto veteran.
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