According to Ruchir Sharma, president of Rockefeller International, Bitcoin could eventually recover. The famous investor also compared the past path of mother cryptocurrencies to another asset in the 2000s: Amazon stock.
Bitcoin price: short-term mistrust, long-term hope
While Sharma’s prospects are very positive in the medium to long term, it considers that the market for digital assets may not be over yet. Therefore, he believes that the price of Bitcoin could continue to unscrew in a short-term approach. According to him, the fall could still last 5 to 6 months.
In the longer term, Sharma focuses on the fundamentals of Bitcoin as a key argument for a bullish reversal. According to him, the idea of a dollar-independent monetary regime is clearly still a strength for Bitcoin. If there is no question today about replacing the greenback with Bitcoin, Sharma believes this hypothesis may be credible in the long run. But for this, it sets a condition for Bitcoin: the decline in its volatility.
In general, the reliance on the US dollar cannot continue. There needs to be another currency that allows transactions and has a slightly more stable value. In three to five years, BTC is expected to emerge as a more stable asset.
Bitcoin: A way similar to Amazon?
Like many other assets, Amazon’s stock has been hit hard by burst internet bubble in the early 2000s. Then Amazon shares lost nearly 90% of their value. But over the next 20 years, the loss will more than completely wipe out as Amazon’s stock sees its price rise by more than 300.
According to Sharma, Bitcoin could follow a similar trajectory to the US stock. Moreover, if we consider that the fall in the price of Bitcoin can be done in the same proportions as Amazon’s action, this would bring the BTC back below the 7,000 dollar mark. But a 300-fold increase in 20 years would take Bitcoin over $ 2 million. Many investors would reach out with both hands today!
Wait, or invest?
According to Sharma analysis, therefore it would be better to wait before investing in Bitcoin. Because beyond the magnitude of the fall in Amazon shares, the investor also displays the stock market in a more general way. He estimates that the bearish steps on a market last about 1 year on average and that the declines are around 35% there.
However, the current downturn is less than a year old and some stock indices such as the S&P 500 have fallen by “only” 20%. For Sharma, risk appetite is not yet on the rise. weighed by the monetary policy decisions of the Fed.
I’m not ready to talk bottom but still on bitcoin and digital assets. The US bear market regime, which is driving global risk appetite, remains highly visible.
However, if we believe Sharma’s long – term analysis, the current price close to $ 20,000 could be a very interesting long – term point. Where BTC significantly follows Amazon’s track, Bitcoin could be worth $ 100 invested today within 20 years.
Crypto-assets are a risky investment.
If you do not have new cryptocurrencies, please feel free to consult our guide on investing in Bitcoin!