Dear Reader,
Bitcoin and other cryptocurrencies' prices fell after Elon Musk's negative comments on cryptocurrency mining excessive energy consumption.
I think this is just a correction along the path upwards for Bitcoin and most other cryptocurrencies' prices.
Many analysts think that Federal Reserve raising interest rates levels and other major globally significant central banks following suit could trigger a crash in cryptocurrencies' prices. Apparently they think that rising interest rates levels will have the effect they usually have on technology stocks and technology startups companies' values. When interest rates rise technology companies, most of which are unprofitable, find it harder to raise capital. In addition to that, pension funds, hedge funds and mutual funds find it more attractive on a risk adjusted basis to invest in the now not small interest rates of 10 year US Treasuries. This saps away the much needed capital for startup technology companies and their values fall. I do not think rising interest rates would have such an effect on cryptocurrencies. At least, not to the extent they have on technology companies.
In the mid-term, I forecast the march higher for Bitcoin and other major cryptocurrencies' prices will continue. We might soon see a price of 100 000 USD for a Bitcoin.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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