Adam Back Expects Bitcoin to Reach $100,000 by Year-End Despite Recent Dip
The co-founder and CEO of Blockstream, Adam Back, is still optimistic about Bitcoin's future and expects the leading cryptocurrency to reach $100,000 by the end of this year. Despite the recent market dip, Back remains bullish and shared his views on Twitter in response to a message from cryptocurrency blogger Heidi Chakos.
"Why not this year? Now all the DeFi rot with wBTC will be washed out of the market,"wrote Back.
why not this year. once the defi contagion via WBTC is flushed out.— Adam Back (@adam3us) June 16, 2022
In her tweet, Chakos stated that during the next bull market, Bitcoin price could easily exceed $100,000. Back replied, saying that he saw no reason why this couldn't happen by the end of the year. He also added, "Why not this year? Now all the DeFi rot with wBTC will be washed out of the market."
Blockstream CEO Points Out Factors Contributing to Bitcoin's Growth
Back elaborated on his idea, pointing out the fundamental factors that he believes will contribute to the growth of Bitcoin. He stated that the US Federal Reserve is likely to start the quantitative easing program again this year, which should push the cryptocurrency market up.
According to Back, "Everyone has their own views on macroeconomics. I think that the stock market and the new US election round, quantitative easing and rate cuts, money printing - all this will lead to a decrease in correlation."
"Everyone has their own views on macroeconomics. I think that the stock market and the new US election round, quantitative easing and rate cuts, money printing - all this will lead to a decrease in correlation,"Beck said.
Blockstream CEO Advises Against Margin Trading
While urging caution, Back also advised against margin trading and encouraged investors to "wait until the DeFi dirt is washed from the market." He emphasized that if investors do not use leverage trading, then they can simply buy and hold their investment until it pays off in the long run.
Back reiterated that he is a "mega-enthusiast" of Bitcoin and is constantly buying BTC when he has money.
Michael Novogratz Shares Similar Views
Another well-known Bitcoin enthusiast, Michael Novogratz, also believes that BTC will start to rise after the US Federal Reserve finishes raising rates. However, he does not expect this to happen as quickly as Back does.
Despite the recent market dip, Adam Back remains optimistic about Bitcoin's future and expects it to reach $100,000 by year-end. Back's views are based on his belief that the US Federal Reserve will restart its quantitative easing program, leading to an increase in the cryptocurrency market. Investors should proceed with caution and avoid margin trading, according to Back.