Early Bitcoin (BTC) investors and founders of crypto-exchange Gemini with supported coins like Ethereum (ETH) and Ripple’s XRP operated by Tyler and Cameron Winklevoss, see bitcoin gaining more than 25 times its current value as more investors adopt the cryptocurrency as an inflation hedge.
“Our thesis is that Bitcoin is gold 2.0 and it will disrupt gold. If it does that it has to have a market cap of $9 trillion. So we think bitcoin could price one day at $500,000 a bitcoin. So at $18,000 bitcoin it’s a hold or if you don’t have any its a buy opportunity because we think there’s a 25x from here,”Tyler Winklevoss, CEO at Gemini
The price of Bitcoin rose 5% on Monday to top $19,000 as investors continue to pile back into the cryptocurrency in 2020. The price of bitcoin was trading around $19,022, according to data from industry site CoinDesk. The cryptocurrency first climbed near the $20,000 mark in December of 2017. It collapsed soon after, and had not recovered to the $18,000 level until recent weeks.
The asset is up over 160% this year with interest from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller. Fintech giants Square and PayPal have lowered the barrier for entry into the asset.
Bitcoin (BTC) on Kraken flash crash & dumps $3,000
The reason for the crash, which will have liquidated a large number of positions and caused considerable pain for many a speculator, was likely what is known as a “stop-loss run.”
Stop-loss runs involve large-volume traders who intentionally place large sell orders at a specific price point, then target where they think a large number of stop-loss positions reside. In this case, the target was around $16,600, near the location of last week’s local bottom.
The result is a cascade of selling pressure that delivers the result, if successfully estimated, very quickly, only for the market to subsequently rebound once the process is over.