Bitpay: $ 20,000 is the bottom for a possible decline in the price of bitcoin

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Large institutional investors who have recently announced the purchase of bitcoin have long-term prospects and will not part with the asset at the first sign of correction, many market participants believe. Sonny Singh, chief commercial officer of crypto payment company Bitpay, questions this theory, suggesting that such investors may sell bitcoin earlier than originally planned. The reason for this may be the continuing rise in the exchange rate.

 

“A lot of institutions were buying around $ 20,000, so at this level I see a bottom for a possible decline in Bitcoin,” Singh told Bloomberg on Monday. “All these buyers are saying,“ Oh, we’re going into bitcoin for 3-5 years. ” That’s fine, but I think if Bitcoin hits $ 45,000 in the next month or so, they’ll say, “Wow, we just doubled our investment. We no longer need these three-year horizons. Let’s sell a little. ”

 

In the second half of 2020, several companies with multi-million dollar assets announced the purchase of bitcoin, including MicroStrategy, MassMutual and Skybridge Capital.

 

“I spoke to the people at Skybridge,” podcast author Peter McCormack said in a separate interview. “They say $ 100 million is not a big deal for MassMutual, so they won’t be selling in a year, two, or five years.”

 

Singh, however, is confident that institutional investors can bring sales of unprecedented proportions to the market:

 

“Then we will begin to observe the pressure of sellers in bids for $ 200 million. The industry has not encountered this before. This can be a catapult event, causing the markets to go down quite quickly. There may be a drop from $ 45,000 to $ 40,000, then to $ 35,000 and $ 30,000, but I think the low will be $ 20,000. ”

 

In September, after the first $ 425 million Bitcoin purchase, MicroStrategy CEO Michael Sailor admitted that his company could liquidate its crypto assets at any time. MicroStrategy currently has 70,470 BTC worth $ 2.4 billion at current exchange rates.

 

“We can eliminate them any day of the week, at any hour. If I need to liquidate $ 200 million in Bitcoin, I can do it on Saturday, ”Sailor said.

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