Bitcoin (BTC) is trying to regain its footing after a sharp decline in price in 2022, with a notable uptrend year-to-date, now trading in a range between $20,000 and $30,000 for the past several months.
In the meantime, a series of institutional developments and macroeconomics have created “the perfect storm” for Bitcoin to break out of this consolidation range, according to the financial expert Dave Weisberger, CEO of CoinRoutes, in an interview for David Lin’s YouTube channel on October 19.
“We are seeing perfect literal perfect storm conditions for Bitcoin. It’s a hedge against the trusted institutions.”— Dave Weisberger (00:03:30)
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Weisberger cited a number of factors for this perfect storm that is brewing for Bitcoin, including the ongoing mistrust of trusted institutions, such as banks and governments, and the current macro environment, characterized by rising interest rates and inflation. He also cited the growing institutional adoption of Bitcoin as a major cause.
The CoinRoutes CEO believes that these factors will combine to drive up the price of Bitcoin in the long term. However, he also noted that Bitcoin is still a volatile asset and that its price could fluctuate significantly in the short term.
At one moment in the interview, Weisberger said that the block subsidy halving could have an impact on prices next year.
Is Bitcoin a risk-on or risk-off asset?
Dave Weisberger also discussed whether Bitcoin is a risk-on or risk-off asset. He said that Bitcoin has historically been a risk-on asset, meaning that it tends to move in tandem with other risky assets, such as stocks.
However, he believes that the leading cryptocurrency is becoming more of a risk-off asset over the years, meaning that it is seen as a safe haven during times of economic turmoil.
“Long term it’s a risk-off play with enormous asymmetric upside.”— Dave Weisberger (00:04:45)
With this saying, Weisberger shows a bullish bias on Bitcoin in the long term. He believes that Bitcoin is the future of money and that it will eventually be used as a global currency. The financial expert also believes that Bitcoin will eventually surpass gold in value at one point.
Interestingly, Dave urged investors to avoid “crowded trades”, by just following what the majority of the market was doing.
“I don’t like crowded trades. Crowded trades always concern me and I always give people advice that if you’re following the entirety of the herd because you hear everybody is doing ‘x’, probably ‘x’ is not the right thing to do.”— Dave Weisberger (00:03:03)
However, despite his bullish bias, he also noted that Bitcoin is still a relatively new asset class and that it is important for investors to do their own research and understand what they are putting their money at before investing.
Watch the interview with Dave Weisberger: