- Bitcoin retail availability is likely to go down when governments start purchasing directly from miners.
- Warren Buffett's wealth may suffer hyperinflation in the future amid Bitcoin's rally to $400,000.
Bitcoin has started to nurture an uptrend again following the extreme losses incurred towards the week's end. On the upside, the flagship cryptocurrency tested $11,800. However, the uptrend was sabotaged and hammered by instability brought about by the OKEx suspension of digital assets/cryptocurrencies withdrawals. BTC/USD tumbled to $11,200 before resuming the uptrend.
Bitcoin awaits a 40-80X move on the upside
Max Keiser, a renowned TV host, believes that futures traders suppress the current Bitcoin price. However, he is confident that the flagship cryptocurrency will liftoff to $28,000. Moreover, the supply available for sale is bound to reduce as institutions and governments will directly purchase Bitcoin from miners.
In a recent tweet, Keiser said that the suppression is allowing "poor people to stack sats *now* before retail liquidity dries up and the price vaults to gold-parity levels around $400,000." While speaking to CryptoPotato, the TV host emphasized that this the best time and opportunity for the "world's poor… to acquire unconfiscatable Hard Money before a 40-80x move on the upside."
When this happens, we'll see something quite unexpected. The retail market for BTC will dry up. The amount of BTC for sale AT ANY PRICE will be increasingly tiny.
Institutions, corporations, and governments will be buying BTC directly from miners, presumably at a huge premium.
Billionaires like Warren Buffett should be worried
Not long ago, Keiser said Warren Buffett was eventually going to start panic buying Bitcoin, especially after the digital asset surpasses the $50,000 mark. This time, he added that Buffett and other like-minded people would begin to see "their wealth hyperinflation to nothing." Buffett is a known critic of Bitcoin and cryptocurrencies and still insists that it has no value "and never will."
Bitcoin renews the uptrend
At the time of writing, the bellwether cryptocurrency is trading at $11,430 after recovery from the dip to $11,200 on Friday. The daily chart shows the formation of a symmetrical triangle pattern likely to culminate in a breakout to $12,000.
Bitcoin's short-term and medium-term bullish outlook is emphasized by the Relative Strength Index (RSI) 's recovery from the midline. Notably, trading above $11,800 might call for more buy orders, creating Bitcoin's volume to jump above $12,000.
BTC/USD daily chart
The number of new addresses joining the network has started to decline, according to data provided by IntoTheBlock. Roughly 537,000 addresses were created on BTC on October 15, but by October 17, a drop to approximately 434,000 was experienced. A decline in network growth is a red flag for Bitcoin's price soon. The fall affects the inflow and outflow into the network and in the end, it harms liquidity.
Bitcoin new addresses chart
Looking at the other side of the picture
Max Keiser is bullish on Bitcoin with his immediate target at $28,000. However, it is worth mentioning that the massive bullish outlook may be invalidated if Bitcoin does not get to new yearly highs, let alone the all-time high at $20,000. Similarly, IntoTheBlock shows a temporary decline in network growth, which may affect Bitcoin's performance in the short term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.