As it is known, the price of Bitcoin (BTC) has finally risen above the $30,000 level, which it has been away from for 10 months, with its last impressive rally.
What is behind this resurgence and is it a Bitcoin-based comeback? That was the question of the day posed to 3IQ Corp Research Manager Mark Connors on the "Bloomberg Markets" show presented by Alix Steel and Guy Johnson.
Mark Connors: "Bitcoin Is Back"
Connors, who leads the research team at 3IQ Corp, a Canadian mutual fund offering Bitcoin and Ethereum funds and ETFs, said:
“In Bitcoin, miners are back. BTC went through its usual cycle last year.
Thanks to the Sam Bankman-Fried events, we now have a legit example of cryptocurrency exchanges storing Bitcoin. We didn't have this before and it was needed.
So we can say that Bitcoin is back.”
Connors said in the continuation of his speech that “tourists” who do not know about BTC and do not believe in BTC are weeded out. The analyst also argued that the moves by the FED and the US Treasury Department did not help the US dollar against Bitcoin.
Answering the server's question whether BTC is still too weak to be an investment, Connors said:
“From a volatility perspective, it's definitely still a speculative asset. In terms of adoption, 100 to 200 million people are said to own BTC. Coming to the question, yes it can be a bit.
However, we never say buy, we say read about BTC.
We think that adoption is happening right now, and we also believe that Bitcoin will be used as a reserve asset by central banks in addition to gold in the future.”
Connors also argued that the price of BTC exhibits a cycle of 3 years rising and 1 year falling. He said that the source of this is the halving event.
*Not investment advice.