Why Are High Net-Worth Investors Bullish Despite Market Fluctuations?
With Bitcoin hovering between $90,000 and $95,000, down more than 10% from its recent all-time high of over $100,000, there is a growing divergence between traders and long-term investors, with traders predicting that Bitcoin will The currency will fall again, and long-term investors believe the bull market is far from over.
David Siemer, CEO of Wave Digital Assets, which provides asset management services to cryptocurrency investors, also shared this view. Notably, his company works with high net worth individuals, with Cardano CEO Charles Hoskinson among its clients.
“In 14 years of owning Bitcoin, I’ve never seen a dichotomy like this,” Simmer noted in an interview. coin table. “Traders are worried, nervous and hedging, completely neutral or worse. Long-termers are very bullish,” he added.
Furthermore, Siemer believes that Bitcoin is very likely to reach $200,000 this year and believes that each Bitcoin may eventually reach $1 million, although not in the near future. He added that many smart, well-connected people are also very optimistic and expect significant developments over the next six months than most people imagine.
upcoming developments
Seamer noted that several countries, including the United States, Russia, Singapore, the United Arab Emirates, South Korea, Japan, the Philippines and some European countries, are planning to take significant steps to support cryptocurrencies in the coming year. These initiatives are expected to benefit its private sector. Seamer also noted that trust in governments, such as Japan and Singapore, makes cryptocurrency regulations more influential in these countries.
He also emphasized that the growing success of U.S. Bitcoin ETFs is pushing global financial institutions to create new products to compete, such as multi-token income funds. Seamer also said that the U.S. Bitcoin ETF beat the global Bitcoin ETP with its high fees. He believes regulators will be supportive and the EU may make cryptocurrency rules more favorable.
Bitcoin Reserve
Siemer believes that the possibility of creating a new Bitcoin strategic reserve is high, and several countries may do so, even if the United States does not. He mentioned that Wave is in talks with seven U.S. states, including Texas, Ohio and Wyoming, to build reserves.
As for the federal government, Siemer estimates the chances are slightly better than 50-50, as it already holds nearly $19 billion in Bitcoin. He suggested that governments could simply keep these Bitcoins, which would be more acceptable than buying more Bitcoins.
Long-term prospects remain positive
Recently, Grayscale noted that despite temporary headwinds from macroeconomic data, Bitcoin’s price outlook remains “structurally bullish.” Grayscale’s head of research noted that Bitcoin appears to be hampered by a stronger U.S. dollar, which has risen on the back of more hawkish policies from the Federal Reserve and the threat of tariffs.
However, he believes that the recent setbacks in the cryptocurrency market may be short-term as the U.S. presidential inauguration approaches. He remains optimistic about the long-term outlook for cryptocurrency valuations.
