Welcome back to the Tribe.
In this post we are going to go over recent events including:
- Putin commenting on crypto
- Bitcoin itching all time highs
- End of year projections
Nothing should be considered investment or financial advice. Enjoy the ride!
Russia And Bitcoin
Russia and Bitcoin have always had an interesting relationship.
With Putin meeting with the founder of Ethereum Vitalik, to previously banning the currency, to oligarchs in the country buying out warehouses for mining, there has been plenty to think about over the years.
Finally, the country has landed on the decision that crypto is here to stay.
Recently, Putin even announced that:
“Crypto has the right to exist and can be used as a means of payment” -Putin
While this might be a simple statement, what it really does is increase investor confidence.
At the same time, mining companies are looking for anywhere else to go besides China. This might also help influence some of those decisions for the top mining companies in the world.
Not to mention that we know Russia’s richest and elite have been secretly buying up warehouses and mining Bitcoin to hoard for years.
In addition, It is no secret that Russia holds some Bitcoin in reserve and will probably to continue to increase this reserve as time progresses to hedge against the dollar.
With all of the hype around the market, it is not far fetched to expect new all time high out of Bitcoin this year.
With the previous being set in the 65k range, it should not be difficult for the market to have another strong bull run.
2021 Year End Projections
Historically, when Bitcoin or crypto for that matter is on a bull cycle, December is the best month for the market.
There are a few reasons why we think that crypto will continue to surge throughout the year. Here are a few to consider:
This is huge news for the industry and for the Bitcoin price in general.
While this is not an actual ETF, it just goes to show there is little in the way for Bitcoin to see achieve it’s own ETF leading to a massive influx of capital.
While this might not directly influence the price of crypto, what it does is continue to give use-cases to crypto as a mean of exchange.
Most notably, Coinbase is looking to launch their own NFT marketplace and combat some of the already thriving marketplaces like Opensea.
While this has continually been on the horizon for many years, it really is the next step for the crypto space.
Currently, a majority of the issues with the Dapps and web 3.0 services are directly linked to gas issues and Ethereum hold ups.
Once 2.0 launches, we can hope for a surge in these applications and solutions leading to the new age of internet.
Para-chains are right around the corner
The next thing to consider is interoperability. We have discussed this for years as the next step for blockchain.
This is what will allow people to exchange one Bitcoin for Ethereum, or for Cardano, or write smart contracts that work on multiple chains and can be settled in almost any crypto.
This is huge. It is the gateway for exchange that reduces friction and allows developers to run with the wind.
U.S. market is continuing to pump money into the economy
With the debt ceiling continuing to rise, there is no limit on how much money will continue to be pumped into the economy before it crashes.
While this is overall a bad thing, it serves to allow investors to continue to purchase assets in the short-term. Right now, a good bit of those investors might be looking to get into the crypto market before it blows up again.
Russia And Bitcoin
Thanks for reading our post on Russia And Bitcoin, EOY projections, and reasons why we think the market is bullish.
We hope you have a great day and don’t forget to subscribe to the Tribe and follow us on Twitter to stay up-to-date on everything happening in crypto!