- Dan Held, director of business development for the crypto exchange Kraken, predicts a rally in Bitcoin’s price to $1 million.
- Held expects Bitcoin to enter a “super cycle” due to the global financial crisis.
In an interview with Lark Davis for his YouTube channel, Dan Held made a prediction about the price of Bitcoin that many are likely to consider extremely bullish. Held is Director of Business Development at the exchange Kraken and said Bitcoin’s is preparing for a steady upward trend. Held spoke about the global financial crisis and the impact that the spread of COVID-19 has had on Bitcoin and the crypto market.
According to Held, Bitcoin has survived the worst, and has held up well. Despite the increased volatility, it is a solid alternative to the US Federal Reserve’s “infinite money” policy, as Held stated:
We’ve got a Halvening. We’ve got a huge macro backdrop where banks are literally printing a million dollars a second, which happened a few weeks ago with the US, the Fed and the Treasury. And so, there couldn’t be a better moment for Bitcoin than now. I’ve waited eight years to see this.
The statement of Held is similar to that of Mike Novogratz. The Bitcoin bull also recently said that this is Bitcoin’s year and that the conditions for a price rally are in place. Novogratz expects a price increase that exceeds the all-time high before the end of the year. Held, for his part, added that another indicator that the market is preparing for a rally is the overall growth which he has seen in recent years.
However, Held’s prediction is much more optimistic than the one made by Novogratz. Held thinks that Bitcoin could enter something he calls a “super cycle” by the end of 2021:
We’re seeing a scenario where there’s a literal infinite amount of fiat that will be printed, and there’s only 21 million Bitcoin. It’s hard to predict, but long-term, maybe late 2021, is when a lot of the models predict what we might see in historical cycles. The classic models show us at $80,000 to $300,000 per Bitcoin. We could see that. We could see something a little crazier. I call this the Bitcoin super cycle.
We could see Bitcoin enter a super cycle where everyone’s seen that graph of Bitcoin’s price – that log price graph, and you get a little boom bust, boom bust, boom bust. But what if (BTC) went a level step up on a log chart?
If the world truly fears their money being devalued – every institution, every sovereign wealth fund, every central bank – if they all truly fear that, Bitcoin’s not going to stop at $100,000 or $300,000. It could go up to a million or two.
Despite his prediction, Held warned potential investors that they could still lose around 85% of their original investment. The director of business development at Kraken said that the high volatility of Bitcoin was indeed part of the design of Bitcoin. Held said that Satoshi Nakamoto, the inventor of Bitcoin, was aware that as the price goes up, more people will want to invest in BTC and make money from it.
And all my bet really is, is will people choose to preserve their wealth? Which is almost unanimously yes. And will they act greedy? And both are kind of one and the same, and I think we can assume humans will act like humans.
Below is the full interview with Dan Held and the Crypto Lark: