- Bitcoin’s price of $250,000 with a market capitalization 25 times higher will attract the attention of bigger financal authorities.
- Adoption of Bitcoin is in the early stages and offers a good buying opportunity, says Mike Novogratz.
A constant concern in the crypto community is the possible retaliation that Bitcoin could suffer from global authorities. However, several experts believe that the cryptocurrency is still in an early stage of development. Therefore, it must achieve certain goals before something like that is going to happen.
In a conversation with Eric Lombrozo, co-founder and CEO of Ciphrex, global macro market veteran Dan Tapiero said that Bitcoin’s market capitalization is still too small for macro authorities. Therefore, he believes that the cryptocurrency is “safe” until it reaches a price of $250,000 and a market cap 25 times higher than its current $200 billion. Tapiero said:
Gold is $12 trillion and no one really cares. #Bitcoin has clearance up to at least 250k. 25x before big boy global macro authorities start caring that it exists.
In response, former Goldman Sachs employee Raoul Pal agreed. Pal also believes that Bitcoin is currently “irrelevant on a global scale”. However, Pal believes that Bitcoin’s market capitalization should be well above $200 billion and the figure proposed by Tapiero. Pal stated:
Yeah, 100% agree. Its currently irrelevant on a global asset scale. As you say, even a $10trn doesn’t concern most central banks. The FX market trades half that in a day. DTCC clears and settles something over a quadrillion in a year.
Tapiero and Pal are experts who have an in-depth understanding of how the traditional financial system works. In addition, they have been particularly bullish about Bitcoin’s performance in recent months. Pal has even stated that a Bitcoin ETF is imminent.
Bitcoin price will grow with greater adoption
On the other hand, Bitcoin bull and investor Mike Novogratz said that the price of Bitcoin has not gone up because more people need to understand how it works. Being at an early stage of development, investors can take advantage of the prices. Novogratz outlines:
If everyone already understood BTC and believed in it, the price would be way higher. Your opportunity to buy at these prices is because we are early in the adoption cycle.
Novogratz has stated that Bitcoin will reach new all-time highs by the end of the year due to the economic crisis caused by the Covid-19 pandemic. Bitcoin’s investor has also been optimistic about the level of adoption that the cryptocurrency has reached. In an earlier tweet, Novogratz said that adoption has been slow, but that “the herd is coming”. That is why he reiterated to his followers that now is the time to buy Bitcoin.