These same individuals said $50,000 was a dip buying opportunity and then they reminded $35,000 as a generational buying opportunity. Next, they also suggested BTC will never fall below $20,000.
Of course, “now” is the “legendary” time to buy dips and many people think buy BTC at or below $10,000 would also be a once-in-a-lifetime opportunity. But so far, all the so-called "experts" have been silent and no one has ever dared to assert anything loudly.
Therefore, investors must do their own research and think whether the price has bottomed or not. Should I be patient and wait for the forecast “down to $10,000” or now is the time to buy? Bitcoin and altcoin?
All in all, predicting a price bottom is a futile endeavor. What really matters is whether or not there is a fundamental reason to choose to invest in Bitcoin.
Sure, the price has changed dramatically, but have the network and infrastructure fundamentals surrounding Bitcoin improved or degraded? This is very important data that investors must consider to base their investment thesis.
Because of this, analysts Joe Burnett of Blockware Solutions and Colin Harper of Luxor Mining have a The meeting to clarify the issue.
Bitcoin Rises As Stock Market Rises
According to analyst Joe Burnett, Bitcoin price is heavily influenced by the policy of the US Federal Reserve (Fed) and its impact on the equity market.
“The macro environment is clearly weighing on the Bitcoin price. High CPI inflation leads to a drastic attitude from the Fed since November 2021. Higher interest rates inevitably push down the prices of all assets. Interest rates are essentially gravity on financial assets, reducing cash flow. The decision to raise interest rates is clearly an attempt to destroy demand and limit inflation by the Fed. It is putting pressure on all risk assets, including Bitcoin.”
When asked about the Bitcoin on-chain hash ribbons indicator showing BTC bottoming and miners surrendering confirming the bottom, Burnett said:
“I think with any kind of on-chain index, you definitely have to be cautious. You can't look at it in a vacuum and say, yes, it's at the bottom.
If US stocks make new lows, I'm sure Bitcoin will follow. I mean, if you're looking at the fundamentals of Bitcoin, I think small capitulations usually mark the bottom of Bitcoin. A hash indicator created by Charles Edwards that essentially depicts mining capitulation this summer.”
The synergy between Big Energy and Bitcoin miners is a positive thing
Discussion of increasingly strong partnerships between major energy providers, oil and gas companies, and industrial-scale Bitcoin miners has become "hot" topic throughout 2022. When asked about the direct benefit of this relationship for Bitcoin itself, Colin Harper said:
“I think mining is not good or bad for Bitcoin. That's good for Bitcoin in the sense that in the long run it will really increase network security, decentralize mining and bring it to every corner of the world if energy producers mine it. If these companies start mining, BTC will become more attractive and less stigmatized. But in terms of the impact on pricing, I think it's just kind of a broader adoption case. Do people use BTC on a daily basis as a medium of exchange, store of value, and conventional investment?
When asked what Bitcoin mass adoption might look like in the future, correlating with the development of the mining industry, Harper explained:
“It will only be a matter of time before they start integrating Bitcoin into the stacks. In my opinion, it will be more interesting when mining becomes an industry because if the energy producing companies and the people who own the energy are mining Bitcoin, it will be hard for those who don't have that asset. profit. Ultimately, you can imagine a future where only energy producers and those invested in or attached to energy producers can truly profit from Bitcoin mining.” .
Regulation and the desire to self-custodial will drive the growth of Bitcoin Lightning Network
Both analysts agree that while it may take a few years, the growth potential of Bitcoin layer 2 is very promising. Burnett predicts that “over time, more and more people learn how to handle Bitcoin, which means more people will want to hold their own keys.”
According to Burnett:
“If Bitcoin adoption increases 100x or 1000x, there will be more competition for scarce block space and on-chain fees increase just because people will demand more payment processing, increasing Enhanced resolution more on the base layer. But the block space to deal with on the base layer is limited. So, in my view, these increased on-chain fees have the potential to essentially increase the liquidity of the Lightning channel. Accordingly, the Bitcoin Lightning Network will become more valuable.”
Harper agrees and adds:
“Lightning Network will allow Bitcoin to be used as a medium of exchange around the world and just like Jack Mallers said, it is something that can split Bitcoin, assets from Bitcoin, the payment network in a real way. can be expanded".