Dan Held, the lead growth team at crypto exchange Kraken, is outlining the catalysts he believes could trigger Bitcoin’s super-spins and lift the leading cryptocurrency’s price to $ 1 million.
“When I look at these cycles, what makes me so excited about this upcoming cycle is maybe… a supercar, but this time, it’s different. The price hike in 2013, the one in 2017, was mainly based on retail speculation. Macro markets are doing well. It was a huge bull run and these were mostly speculative cycles as retail ran with very shaky infrastructure …
With this bull run, we have a lot of different things arranged again. ”
According to Held, Bitcoin’s primary use case as a store of value has been brought into the spotlight by the Covid-19 pandemic amid rampant money printing by governments around the globe.
Covid is a catalytic moment that makes Bitcoin shine. With Covid’s prism when we look at Bitcoin, for most of those who rejected it before, it now makes sense. And that’s where we see this reiterated by organizations. The wealth managers in the world, most of the wealth in the world, they see Bitcoin as a store of value, like a kind of gold 2.0… And that is of great value to the world.
Since governments have responded to the Covid-19 crisis by printing more money, it will devalue these coins and everyone is looking at a fixed cap of 21 million BTC. They are looking at this monetary policy, they are looking at the makeup of bitcoin and its degree of decentralization. Now you can store value in it and no one can take that value away from you, for this incredible lifeboat…
So with the demand of bitcoin, or those who believe in bitcoin, that market has grown so much that we now have large institutions involved in investing. ”
Held adds that improvements in crypto infrastructure that have made bitcoin more accessible to retail investors, is another factor that could continue to drive demand.