Daily News 19

Tag: Bitcoin market cycle

  • Coinbase CEO: “$400,000 Is a Reasonable Target for Bitcoin”

    Coinbase CEO: “$400,000 Is a Reasonable Target for Bitcoin”

    Coinbase CEO Brian Armstrong Projects $400,000 Bitcoin by 2030

    Coinbase CEO Brian Armstrong has reiterated his long‑term bullish outlook for Bitcoin, stating that a price of $400,000 by 2030 is a “reasonable target.” In a recent interview, Armstrong outlined the key drivers behind his prediction, citing market cycles, evolving U.S. regulation, and growing institutional capital inflows.

    Bitcoin’s Four‑Year Market Cycle Nearing a Turning Point

    Armstrong emphasized that Bitcoin continues to follow an approximate four‑year cycle characterized by a strong rally, a period of euphoria, and a subsequent correction. He noted that the current downturn may be approaching its end.

    “Typically, there’s a rise, then a period of euphoria, and then a decline. Most declines last about a year, and we’ve already passed the one‑year threshold in the current decline.”

    Pointing to Bitcoin’s rebound from support around $60,000, Armstrong expressed confidence that the cycle bottom is behind us.

    “Personally, I believe that the bottom of this latest cycle in Bitcoin is behind us. We’ve already seen it start rising from around $60,000.”

    Regulatory Clarity and the CLARITY Act

    Regulatory developments in the United States play a significant role in Armstrong’s $400,000 forecast. He highlighted the CLARITY Act, a bill designed to establish a clearer legal framework for cryptocurrencies. While passage of the act would be a major milestone, Armstrong argued that Bitcoin’s upward trajectory does not depend solely on its success; subsequent regulatory rules could also shape the market’s direction.

    Armstrong described the legislation as a “regulatory checkbox” that would remove substantial uncertainty for banks and asset managers, potentially unlocking a wave of institutional investment.

    “This would be a huge milestone. It could pave the way for institutional capital and bring products like tokenized shares to the US. That would be very positive for the industry.”

    Macro Tailwinds: Bond Market Pressure and Alternative Assets

    Beyond crypto‑specific factors, Armstrong pointed to stress in global bond markets as a catalyst for demand for alternative stores of value such as Bitcoin. If these macroeconomic pressures combine with regulatory progress and the natural market cycle, he believes Bitcoin could enter another strong bull phase in the coming years, ultimately reaching the $400,000 level by 2030.

    *This is not investment advice.

  • Nearly 70% of Bitcoin Supply Is Now in Profit

    Nearly 70% of Bitcoin Supply Is Now in Profit

    Bitcoin’s recent price breakout, which lifted the cryptocurrency from about $62,000 to briefly reach $80,000 in just one week, has helped many investors recover losses.

    Following the sharp rebound, analysis from crypto analytics platform CryptoQuant showed that 69% of Bitcoin’s supply is currently in profit.

    Bitcoin’s profitable supply paints a mixed picture

    A large proportion of Bitcoin’s supply being in profit is generally considered bullish. It indicates that many holders have moved above their purchase prices, a development that can strengthen investor confidence and reduce selling pressure.

    However, the broader supply-based data presents a more mixed outlook and has raised concerns among market analysts. Historical figures show that Bitcoin’s supply in profit has remained above 50% for most of the current market cycle, making the latest reading less unusual than it might initially appear.

    The metric fell below 50% for only 15 days, particularly before Bitcoin’s rally in July. Although most of Bitcoin’s supply has consistently remained profitable, the data indicates that the elevated percentage has been supported by tokens that have stayed dormant for years. Some of those coins may remain inactive for an extended period.

    $617 billion of Bitcoin remains underwater

    Despite the high percentage of Bitcoin’s supply in profit, the amount of capital invested in the cryptocurrency shows that many investors have yet to recover their gains.

    According to the data, $617 billion of the total capital represented by Bitcoin’s supply remains at a loss. The overall value of that supply exceeds $1 trillion.

    This suggests that, despite the recent increase in Bitcoin’s profitable supply, a significant portion of the capital invested in the asset has not yet returned to profit.