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Bitcoin Hits $100,000 for First Time, Now What?

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Bloomberg Dec 5, 2024 21:14 · 14.1k Views

Bitcoin rose above $100,000 for the first time on Thursday off the back of US President-elect Donald Trump's pick of crypto proponent Paul Atkins to be the next head of the US securities regulator. Bloomberg's Mark Cudmore discusses what comes next for the cryptocurrency.

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Transcript

  • 00:00 The naysayers around the crypto space, around Bitcoin, well, they have been firmly sidelined.
  • 00:05 This is historic for the crypto space.
  • 00:07 What undoes the story for Bitcoin at this point?
  • 00:13 I don't think anything undoes it anytime soon.
  • 00:16 And I don't see any reason to be particularly bearish right now
  • 00:19 or be necessarily
  • 00:21 extra bullish.
  • 00:22 Obviously, we got a boost from the SEC appointment.
  • 00:24 We've now broken that $100,000 level which think people were driving for.
  • 00:28 But I think it's hard to have a short term call.
  • 00:30 I think Bitcoin over the next year is looking pretty positive given the US administration's plans to potentially accumulate Bitcoin
  • 00:38 and the fact that they're kind of pro Bitcoin projects.
  • 00:41 They're going
  • 00:41 to encourage more institutions to get involved.
  • 00:44 What derails it?
  • 00:45 I mean, longer term, this is an asset which isn't constructed to be have stable equilibrium at high levels.
  • 00:52 It is it is a gambling asset.
  • 00:54 So it's constructed to have momentum swings in the future, it'll have another there's 70% drawdown.
  • 00:59 That doesn't mean it'll be the end of it.
  • 01:01 It might go to 150 K.
  • 01:03 It might then fall back to like 50K or something like that and then rebound again to new fresh highs.
  • 01:08 The point is it is an asset that the way it's constructed because there always needs to be another marginal buyer for the constant increase in supply
  • 01:16 that there it cannot have equilibrium at high levels.
  • 01:19 So as soon as it's stabilized at high levels, the the gambling incentive disappears and it encourages whales to cash out.
  • 01:25 So all we really know is that volatility be in the future,
  • 01:28 but betide anyone who wants to be aggressively bearish in that point of view.