Good Medium-Term Outlook for Bitcoin, Says Bitfury CEO

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Brian Brooks is bullish on bitcoin for the medium term based on the findings of a recent Goldman Sachs report.

Bitcoin rose 500% between November 2020 and March 2021, but fell to $ 39,692 at 9.45am EST on January 10, 2021. There are some short-term things that are a bit negative for Bitcoin, but only in the short term, said Brian Brooks, CEO of Bitfury and former acting controller of the currency, in a recent interview with CNBC. Brooks went on to say that the Fed is introducing a moderate inflation strategy for 2022. Due to the potential of bitcoin as an inflation hedge, there will be slightly negative effects on prices. He is referring to the Fed’s minutes of its last meeting, where it’s obvious the bank is on the verge of removing stimulus from the economy to fight rising prices.

Bitbank’s Yuga Hasegawa estimated following the Fed’s revelation that bitcoin could drop even more as the broader market digests the Fed’s announcement. The Fed releases a report on Wednesday, January 12, 2021, showing the rise in inflation during the COVID-19 pandemic due to the stimulus packages. This can cause the price of bitcoin to drop again.

Bitcoin took 20% of the gold market in 2021

Brooks is optimistic about the medium-term outlook for bitcoin. He refers to the recent Goldman Sachs report which bodes well for bitcoin. Bitcoin accounts for 20% of the global reserve value market, compared to gold, according to the report. According to the report, Brooks claims bitcoin could reach $ 100,000 and achieve the same status as gold as a store of value. According to the report, Bitcoin returned 60% in 2021, followed by 55% for crude oil and 29% for the S&P 500. Echoing Brooks’ sentiment, Galaxy Digital’s Mike Novogratz said: I’m not nervous about medium term, but I was going to have a lot of volatility in the coming weeks.

Regarding the viability of his own business in light of recent price movements, Brooks said the profitability of bitcoin mining is only partially tied to the price of bitcoin. It’s all about the hash rate and who can grab the most market share. Bitfury has forged partnerships with renewable energy providers. According to Brooks, Bitfury will have an initial public offering (IPO) in the United States. Asked about the connection between the price of bitcoin and the work being done in the Web 3.0 space, Brooks said: There is bitcoin, and then there is everything else. According to Brooks, most of the development work is done on Ethereum, Solana, and Cardano.

Other reasons for the drop in prices

According to Noelle Acheson of Genesis, a big sell off in bitcoin occurred thanks to stop-losses set at $ 40,000, and bitcoin found a support level at $ 40,000. John Wu of Ava Labs was asked if institutional investment will continue in bitcoin in light of its decline. Smart money will follow where the money is, which is in Web 3.0, Wu said.

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