Why High Net Worth Investors Are Very Bullish About Bitcoin Right Now

As Bitcoin (BTC) teeters around $90,000-$95,000, down more than 10% from its peak four weeks ago, there is a growing contrast among traders who are showing technical analysis tools could be the top cryptocurrency. Another plunge is expected, and long-term investors believe the bull market is nowhere near over.

These are the words of David Siemer, CEO of Wave Digital Assets, a company that provides asset management services to funds and high-net-worth individuals in the cryptocurrency industry. The company counts Charles Hoskinson, CEO of the company behind Cardano, as one of its customers.

“In my 14 years of owning Bitcoin, I have never seen such a dichotomy,” Simmer told CoinDesk. “Traders are all worried, nervous, hedging, completely neutral or worse. And the long-term people are all very optimistic.”

“There’s a really good chance we’ll get to $200,000 per Bitcoin this year,” Siemer said. “Do you think I’ll ever see a million dollars a penny in my lifetime? confident. Not soon, not next year. … The smart, connected people I know are also really optimistic. “More will happen in the next six months than most people think.”

Topping the list of developments for the coming year is that numerous jurisdictions are taking big steps in favor of cryptocurrencies, including the United States, Russia, Singapore, the United Arab Emirates, South Korea, Japan, the Philippines, and some European countries. , according to Siemer. (Wave runs encryption training programs for various departments of the U.S. government, such as the Internal Revenue Service and the U.S. Marshals Service, and other branches of government around the world. In fact, government practices are the company’s fastest-growing business.)

These measures, in some form or another, are likely to have a positive impact on some private sectors in these countries, Siemer said. “(Japan or Singapore) are societies that actually trust and rely on the government. If the government says it’s okay, it’s actually really okay. “It’s different from America, where we think our kids are stupid,” he said.

What is causing the sudden interest in the cryptocurrency industry? For example, the enormous success of U.S. spot Bitcoin exchange-traded funds (ETFs) has led financial institutions around the world to consider how to compete. This means developing exotic new products, such as multi-token yield funds, to replenish the liquidity absorbed by BlackRock’s IBIT.

“The ETF launched in the U.S. and completely devastated all Bitcoin ETPs around the world,” Siemer said. “They all had terrible products that charged 1.5% commission. “They are all ruined.” Regulators tend to support this, Siemer said. For example, the European Union could end up producing a friendlier version of the Marketplace Regulated Cryptocurrency Assets (MiCA).

It is also likely that we will see new strategic Bitcoin reserves, Siemer said. “Even if the United States doesn’t have reserves, at least some other countries will,” he added. He said he was not taking a negative stance on the prospects for a U.S. wave, but was currently consulting with seven states, including Texas, Ohio and Wyoming, that were considering securing reserves.

What about the federal government? Siemer puts the odds at slightly better than 50-50 thanks to the nearly $19 billion worth of Bitcoin it already holds.

“This is a decent start for Bitcoin reserves,” Siemer said. “All they have to do is not sell it. As you know, I feel much better about my tax base than buying $10 billion worth of Bitcoin.”