Renowned Bitcoin (BTC) investor, researcher and economist shared his thoughts on the catalysts of the next Bitcoin (BTC) rally and the potential ways of benefitting from it for various groups of retail investors. Also, some suggestions about final price goals for the cycle are indicated in a report by his firm Adamant Research.
Bitcoin (BTC) price reached first target set by Adamant Research, Tuur Demeester says
Bitcoin (BTC), the largest cryptocurrency, accomplished the first price target mentioned in the "How to Position for Bitcoin Boom" report by Adamant Capital that was released in April 2023. The analysts predicted the BTC price staying in the $22,000-$42,000 range before entering the next rally phase.
The "endgame" target of this cycle remains "well north of $120,000," says Demeester. Bitcoin (BTC) reached $42,000 on Dec. 5, 2023.
Then, the analyst observed the indicators that are worth using while checking the phase of the Bitcoin (BTC) cycle. For instance, the largest Bitcoin (BTC) whales are still holding and not showing interest in selling their riches at current prices.
Also, the Net Unrealized Profit and Losses (NUPL) indicator entered the "Green" ("Belief-Denial") zone, which hints at "hopeful" sentiment of investors.
Bitcoin (BTC) remains under pressure as regulators are still attempting to crack down on crypto. At the same time, Binance (BNB), the largest crypto exchange, has avoided bankruptcy, which would have been an extremely powerful bearish catalyst for BTC.
Finally, Bitcoin (BTC) is still likely to benefit from the ever-accelerating money-printing processes in the U.S. and EU, similarly to Gold (XAU) previously. As such, its rally is backed by powerful macro catalysts.
How to meet next BTC all-time high locked and loaded?
Tuur Demeester is still bullish on BTC in the long term: He compares Bitcoin's (BTC) role in the "internet of money" to TCP/IP's role in the internet. He proposes two strategies to those who would like to benefit from its next rally: purchasing only Bitcoin (BTC) or splitting investments between Bitcoin (BTC) and public Bitcoin-centric companies.
In terms of timelines in investing, Demeester compares two strategies: "lump sum" (investing all you can afford in a single transaction) and "dollar-cost averaging" (DCA, or investing a fixed sum in fiat over a certain period of time: $1,000 every two weeks and so on).
We opened this chapter by comparing lump-sum investing versus dollar cost averaging into bitcoin, concluding while the latter is less psychologically straining, the best results tend to be produced by the former
His classification of Bitcoin (BTC) investing goals includes insurance against systemic risk (with 2-5% of the net portfolio in BTC), a speculative asset (5-10%) and an extremely aggressive early retirement bet (10-50%).
By press time, Bitcoin (BTC) is changing hands at $42,200, being down by 1.4% in the last 24 hours.
Yuri Molchan
Arman Shirinyan
Tomiwabold Olajide
