Expert Says Bitcoin is Currently ‘Overhyped’: Can BTC Slip Below $70k Soon?

Share This Post

Federal Reserve

The post Expert Says Bitcoin is Currently ‘Overhyped’: Can BTC Slip Below $70k Soon? appeared first on Coinpedia Fintech News

Milton Berg, the founder of MB Advisors, recently weighed in on the current state of Bitcoin, especially in the context of its surge to new all-time highs following the 2024 U.S. election. The discussion around Bitcoin’s value and its role in the market has gained momentum, particularly with political figures like former President Donald Trump expressing pro-Bitcoin sentiments. 

Bitcoin’s Price Surge: Speculation or Sustainable Growth?

Bitcoin saw a sharp rise in price following the election, reaching approximately $74,000 to $76,000 per coin. This move prompted questions about whether the spike was simply a “buy the news” reaction to Trump’s win, or if it reflects a sustainable upward trend in the cryptocurrency market.

Berg, however, remains cautious. In a recent interview with David Lin, he admitted that he cannot definitively say what Bitcoin is worth. He likens Bitcoin to a highly speculative asset with no clear or consistent value metrics. According to Berg, Bitcoin’s price is driven largely by market sentiment—specifically, what people are willing to pay for it.

Is Bitcoin Overhyped?

Berg believes that Bitcoin is currently overhyped, pointing out the speculative nature of the asset. In his view, Bitcoin’s value could plummet from its current levels of $76,000 to much lower levels without fundamentally altering the cryptocurrency’s function.

He draws a stark contrast between Bitcoin and traditional commodities like gold. For example, if the price of gold were to fall from $2,000 to $500, people would likely buy gold in bulk, anticipating future demand for its industrial and jewelry uses. In contrast, with Bitcoin, there’s no real underlying demand driving the price. Instead, its value is purely based on what buyers are willing to pay.

Trump’s Bitcoin Reserve Idea: A Step Too Far?

One of the more controversial statements made by former President Donald Trump was his proposal to set up a Bitcoin reserve for the U.S. government. Trump suggested that the U.S. could purchase Bitcoin and hold it as a part of the nation’s reserves. However, Berg dismisses this idea as misguided, saying that the U.S. government no longer operates like a creditor nation but instead is deeply in debt.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Peter Schiff Highlights Liquidity Risks If US Holds Bitcoin, Says It Could Trigger Market Crash

The post Peter Schiff Highlights Liquidity Risks If US Holds Bitcoin, Says It Could Trigger Market Crash appeared first on Coinpedia Fintech News Peter Schiff, a staunch Bitcoin critic in a recent X

Cardano Price Prediction: Analyst Sounds Alarm Of Break Through Key Resistance, Why A Rally Could Follow

Based on chart indicators, the Cardano price has just broken through a key resistance, sparking the promise of a potential uptrend While the cryptocurrency is gearing up for a possible bullish rally,

Crypto CEO Held Hostage In Toronto, Freed After $1 Million Ransom Payment

Dean Skurka, CEO of blockchain and crypto firm WonderFi, was kidnapped, held for ransom, and was subsequently released after paying $1 million According to CBC and other sources, Skurka was

Bitcoin’s Path to the Top: What It Will Take to Dethrone Silver, Apple, Nvidia, and Gold

At press time, with bitcoin floating comfortably above $76,000, the flagship cryptocurrency holds its ground as the ninth largest asset worldwide by market capitalization Bitcoin Overtakes Meta, Sets

Fundstrat Analyst Tom Lee Foresees Bitcoin Surging Past $100,000 This Year

The post Fundstrat Analyst Tom Lee Foresees Bitcoin Surging Past $100,000 This Year appeared first on Coinpedia Fintech News Tom Lee, head of research at Fund Strat Global Advisors and Chief

MakerDAO community decides to continue Sky rebrand amid centralization concerns in vote

The DeFi project Sky has retained its new brand identity rather than revert to MakerDAO following a community vote Polling data revealed that 793% of votes supported maintaining the Sky brand as the