Blockstream CEO Adam Back Asserts Bitcoin’s Fundamentals Warrant a $100,000 Valuation
Blockstream CEO Adam Back has ignited a fresh wave of discussion within the cryptocurrency community by stating that Bitcoin’s current price should have comfortably surpassed the $100,000 mark, citing the coin’s fundamentals. Back’s remarks, delivered via a tweet, have stirred up curiosity among crypto enthusiasts and investors alike. However, despite this statement, Bitcoin has yet to breach the $35,000 threshold, sitting at $34,000 at press time, according to TradingView data.
Stahp reloading, you guys crashed dtcc website 🤣 it doesn’t mean anything anyway. Yes ETF coming in a while, but these are all procedural normal things. Yes BTC mispriced should be already over $100k for several few years based on fundamentals. But let’s keep it real.
— Adam Back (@adam3us) October 24, 2023
The tweet in question read: “Stahp reloading, you guys crashed dtcc website 🤣 it doesn’t mean anything anyway. Yes ETF coming in a while, but these are all procedural normal things. Yes BTC mispriced should be already over $100k for several few years based on fundamentals. But let’s keep it real.”
This statement by a prominent figure in the crypto space has raised questions about why Bitcoin’s price has not seen the expected boost based on its fundamental strengths. While Back acknowledges the upcoming exchange-traded bitcoin fund (ETF) and the “procedural normal things” surrounding it, he maintains that Bitcoin’s current pricing does not align with its underlying fundamentals.
The cryptocurrency market experienced a notable surge in the wake of Back’s comments, with Bitcoin briefly exceeding $35,000, marking an 18-month high. This sudden increase in price was largely attributed to the mounting speculation regarding the launch of an ETF focused on Bitcoin. An ETF could bring a significant influx of capital from traditional investors into the cryptocurrency world through the stock market, potentially driving further growth in the sector.
The optimism surrounding the ETF launch was further fueled by a substantial 10% rise in Bitcoin’s value on the previous Monday. This surge had a ripple effect across the broader cryptocurrency market, with various digital assets experiencing notable gains. Additionally, cryptocurrency-related stocks also saw increased investor interest and trading activity.
The concept of an ETF, or exchange-traded fund, has been a recurring theme in the cryptocurrency space for some time. Such a financial instrument, if approved, would offer a way for traditional investors to gain exposure to Bitcoin without the need to hold the asset directly. It essentially allows investors to buy shares of the fund, which in turn holds Bitcoin, mirroring its price movements.
Blockstream CEO Adam Back’s assertion that Bitcoin’s fundamentals should have propelled it well beyond the $100,000 mark has led many to ponder the current state of the cryptocurrency market. While Bitcoin’s price remains below Back’s suggested valuation, the potential for an ETF’s approval and its positive impact on the market continues to inspire hope and enthusiasm among investors.
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