Brian Brooks is bullish on bitcoin in the medium-term due to findings in a recent Goldman Sachs report.
Bitcoin rose 500% between November 2020 and March 2021, but fell to $ 39,692 at 9:45 a.m. EST on January 10, 2021. “There are short-term things that are a bit negative for Bitcoin, but only in the short term, ”said Brian Brooks, CEO of Bitfury and former acting currency controller, in a recent interview with CNBC. Brooks went on to say, “The Fed is introducing a moderate inflation strategy for 2022. Due to the potential of bitcoin as an inflation hedge, there will be slightly negative effects on prices.” He is referring to the Fed’s minutes of its last meeting, where it’s obvious the bank is on the verge of removing stimulus from the economy to fight rising prices.
Yuga Hasegawa of Bitbank opined in the wake of the Fed’s revelation that bitcoin could fall even further as the broader market digests the Fed’s announcement. The Fed is releasing a report on Wednesday, Jan. 12, 2021, illustrating how much inflation increased during the COVID-19 pandemic due to stimulus packages. This may cause a further bitcoin price drop.
Bitcoin took 20% of the gold market in 2021
Brooks is bullish on Bitcoin’s medium-term outlook. He refers to the recent Goldman Sachs report which bodes well for bitcoin. Bitcoin accounts for 20% of the global reserve value market, compared to gold, according to the report. According to the report, Brooks claims bitcoin could reach $ 100,000 and achieve the same status as gold as a store of value. According to the report, Bitcoin returned 60% in 2021, followed by 55% for crude oil and 29% for the S&P 500. Echoing Brooks’ sentiment, Galaxy Digital’s Mike Novogratz said, “I’m not nervous. in the mid-term, but we’re going to have a lot of volatility in the next few weeks.
Of his own company’s viability in light of recent price action, Brooks said, “The profitability of bitcoin mining is only partly-related to bitcoin price. It’s about hash rate and who can grab the most market share.” Bitfury has inked partnerships with renewable energy providers. According to Brooks, Bitfury will have an Initial Public Offering (IPO) in the USA. When questioned on the link between bitcoin’s price and work being done in the Web 3.0 space, Brooks said, “There’s bitcoin, and then there’s everything else.” According to Brooks, most of the development work is being done on Ethereum, Solana, and Cardano.
Other reasons for the drop in prices
According to Noelle Acheson of Genesis, a big sell off in bitcoin occurred thanks to stop-losses set at $ 40,000, and bitcoin found a support level at $ 40,000. John Wu of Ava Labs was asked if institutional investment will continue in bitcoin in light of its decline. “Smart money will follow where the money is, which is in Web 3.0,” Wu said.
