Adam Back, a key figure in the cryptocurrency space with ties to Bitcoin’s mysterious creator Satoshi Nakamoto, suggested that the current price suppression might be due to certain sellers urgently needing cash.
These sellers, according to the programmer, are offloading their holdings, and once their limited supply is exhausted, the market could start to rise again. He indicated that data supports the presence of basis trading, where collateral is BTC rather than Bitcoin ETFs, and highlighted that buying activity is still occurring through CME futures, which points to latent demand.
Mow supported Back’s analysis, noting the rise in short interest from new, less experienced traders who misinterpret the cash and carry trade. He argued that the significant shorting activity on futures is likely unsustainable and those involved could face massive liquidations soon, driving Bitcoin’s price upward. Mow likened the current suppressed state of the price to a compressed coil ready to spring, suggesting that it is poised for a dramatic increase.
Furthermore, he emphasized that Bitcoin trading below $70,000 is an anomaly given its trajectory. He expressed confidence that not only would $1 million per Bitcoin eventually seem like a bargain, but the price would ultimately surge to $10 million, making it a pivotal investment for the future.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
