What to know:
- Bitcoin is down sizably over the past few weeks, shaking the confidence of traders even as long-term investors grow more bullish, according to Wave Digital’s David Siemer.
- Financial entities around the world are competing to offer more crypto products to their clients.
- Siemer expects some countries to establish strategic bitcoin reserves even if the U.S. doesn’t.
Currently, Bitcoin (BTC) hovers around the $90,000 to $95,000 range, marking a drop of over 10% from its previous record high set less than four weeks ago. This situation has sparked a divergence in opinions between traders, who predict another potential fall based on their technical analysis, and long-term investors, who are convinced that the bull market is far from over.
According to David Siemer, who is the CEO of Wave Digital Assets, this information comes from a company that offers asset management services for funds and wealthy individuals in the cryptocurrency sector. One of their notable clients happens to be Charles Hoskinson, the CEO of the Cardano-associated firm.
For 14 years of owning bitcoin, I’ve never encountered such a split opinion as this, Siemer shared with CoinDesk during an interview. “Short-term traders are fearful and cautious, some even hedging their positions, remaining neutral or worse. On the other hand, long-term investors are extremely optimistic.
Siemer predicts a strong possibility of Bitcoin reaching $200,000 this year. He believes it’s plausible for a Bitcoin coin to reach $1 million in his lifetime, but not within the next year. He also mentioned that he and other knowledgeable individuals are quite optimistic about Bitcoin’s future. According to him, more significant developments are expected in the upcoming six months than many might anticipate.
According to Siemer, a key trend for the upcoming year involves multiple countries such as the U.S., Russia, Singapore, the United Arab Emirates, South Korea, Japan, the Philippines, and certain European nations, taking significant strides in favor of cryptocurrencies. Interestingly, Wave, which offers crypto educational programs to various U.S. government agencies like the Internal Revenue Service and U.S. Marshals Service, among others worldwide, has noted that their government-focused business is experiencing rapid growth.
According to Siemer, these measures, regardless of their specific nature, could potentially generate favorable ripple effects within the private sectors of certain nations, especially those like Japan and Singapore that have strong faith in their governments. He noted that in contrast to the U.S., where people often view government officials as less than intelligent, these societies tend to trust their leaders’ decisions.
As an analyst, I find myself intrigued by the surge of interest in the crypto industry lately. One significant factor fueling this curiosity is the remarkable achievement of U.S. spot Bitcoin exchange-traded funds (ETFs), which has set a new standard for the financial sector. This success has prompted global financial institutions to brainstorm innovative strategies, such as developing multi-token yield funds, in an attempt to keep pace and capitalize on the liquidity that was previously dominated by BlackRock’s IBIT.
According to Siemer, ETFs originating from America significantly outperformed bitcoin ETPs globally. He noted that these products were subpar, with high fees of 1.5%, and as a result, they suffered significant losses. Furthermore, Siemer suggested that regulatory bodies, such as the European Union, may adopt more favorable regulations for cryptocurrencies, potentially resulting in a more welcoming version of the Markets in Crypto-Assets Regulation (MiCA).
The likelihood of new strategic bitcoin reserves being established is quite possible, according to Siemer. He mentioned that while the U.S. might not create one, other countries are likely to do so. However, he expressed optimism about the prospects in the U.S., as he’s currently engaged in discussions with seven separate states who are contemplating the establishment of such a reserve. Some of these states include Texas, Ohio, and Wyoming.
Regarding the federal government, Siemer estimates that the chances are slightly more likely than not, partly because they currently hold approximately $19 billion in Bitcoin.
Siemer commented, “They’ve made a good initial move with the bitcoin reserve. The key now is to hold onto it. Investing in $10 billion worth of bitcoin might be harder for the public to accept compared to just keeping what they have.
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2025-01-11 18:08