Former Coinbase CTO Bets $1 Million on Bitcoin Reaching $1 Million in 90 Days

Srinivasan, a well-known Bitcoin enthusiast and entrepreneur, is betting that the United States will experience hyperinflation, leading to a deflation of the U.S. dollar and a surge in the value of Bitcoin. Medlock, on the other hand, is bearish about hyperinflation in the country. The bet has been set up as a smart contract, and if Srinivasan loses, he will pay $1 million worth of the dollar-pegged stablecoin USD Coin (USDC) and one BTC to Medlock. If Bitcoin’s price reaches $1 million by the deadline, Srinivasan will keep the 1 BTC and the $1 million in USDC.

Srinivasan has also disclosed that he will move another $1 million in USDC for another wager on the same topic, with Medlock and one other person. The bet comes at a time when Bitcoin’s price has already reached $27,387, with its market capitalization adding over $194 billion year-to-date to a 66% growth in 2023. It has also outperformed Wall Street bank stocks amid fears of a global banking crisis.

Srinivasan’s bet is based on his belief that the U.S. economy is facing an impending crisis that will lead to the deflation of the U.S. dollar, which will result in a hyperinflation scenario that will drive Bitcoin’s price up to $1 million. This view is shared by many other Bitcoin proponents, who argue that Bitcoin’s finite supply and decentralization make it a safe-haven asset in times of economic uncertainty.

However, the mainstream financial industry and economists have largely dismissed these claims, arguing that Bitcoin’s price is driven mainly by speculative trading and that it has no intrinsic value. Despite these criticisms, Bitcoin’s popularity and adoption continue to grow, with major companies and institutions like Tesla, MicroStrategy, and PayPal investing in the cryptocurrency.

In conclusion, Balaji Srinivasan’s $1 million bet on Bitcoin’s price reaching $1 million in 90 days is a bold move that reflects the growing optimism among Bitcoin proponents about the cryptocurrency’s future. While it remains to be seen whether Srinivasan will win the bet, the ongoing debate over Bitcoin’s value and role in the global economy is likely to continue for some time.


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Analysts say Bitcoin’s range-bound trading at a key support level reflects a trend reversal

Bitcoin (BTC) and cryptocurrency holders are enjoying the fruits of their labor on Feb. 10 after Bitcoin price rallied shortly after the U.S. Bureau of Labor Statistics showed a blistering 7.5% Consumer Price Index (CPI) print. This shows that inflation continues to worsen as fiat currencies bleed out their purchasing power. 

Data from Cointelegraph Markets Pro and TradingView shows that after trading below $44,000 during the early hours on Thursday, the price of Bitcoin spiked to an intraday high at $45,850 following the release of the CPI data and most major stock market indices plunged into the red.

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what several analysts are saying about how Thursday’s CPI print could affect the price action for BTC moving forward and what levels to keep an eye on as the world grapples with high inflation.

Bitcoin enters a new cycle

“We are in a new cycle now” according to Ran Neuner, host of CNBC’s Crypto Trader, who posted the following chart highlighting the February BTC breakout as part of a cyclical pattern that Bitcoin has been trading in over the past year.

BTC/USD 1-day chart. Source: Twitter

As shown in the chart above, this is the second time in less than a year that BTC has reversed course to head higher following a steep downtrend.

Neuner said,

“This CPI pump is confirmation that CPI/Interest rate hikes are part of the old cycle. Ever since we broke the trend line, the news is different, the narrative is different. It’s not a coincidence. Be a cyclist.”

Analysts say the multi-month correction is over

Further insight into this trend reversal following a 3-month correction was provided by technical analyst and pseudonymous Twitter user ‘CryptoBirb’, who posted the following chart detailing the range-bound trading for BTC over the past year stating “with a bit of luck, Bitcoin may see follow-through to the upside, even beyond $50,000.”

BTC/USD 1-week chart. Source: Twitter

Should BTC manage to hold its momentum at these levels, “Bitcoin has near targets of $46,300 – $46,500.”

CryptoBirb said,

“The most important line in the sand is defined at $51,000 by the price action of Bitcoin. That level could be expected to work as a magnet for BTCUSD if we are to see follow-through to the upside.”

Related: Bitcoin rejects sell-off as 7.5% US inflation fails to keep BTC down for long

BTC price decouples from equities

The bullish performance seen across the cryptocurrency markets in February was addressed in comments by Dalvir Mandara, a quantitative researcher at Macro Hive, who noted that the “impressive gains” have come “on the back of markets digesting increased Fed hawkishness and pricing in more hikes, as well as the ECB pivoting to potential hikes in 2022.”

According to Mandara, the fact that the crypto market has been able to rally higher despite tighter than expected liquidity conditions “suggests macro factor may be affecting them less than before.”

Mandara pointed to Bitcoin’s correlation to tech stocks, which has now “fallen from the highs of 75% last week to 50% this week” as evidence for this shift in impact on the BTC price. 

Rolling 30-day correlation between BTC and NASDAQ. Source: Macro Hive

Mandara said,

“Overall, we still think the macro backdrop is negative for crypto but on-chain/flow metrics have turned more positive so we are moderately bullish on balance.”

The overall cryptocurrency market cap now stands at $1.996 trillion and Bitcoin’s dominance rate is 41.9%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.