Bitcoin To 10x From These Levels Says Analyst, Predicts Other Giants to Follow MicroStrategy
Business Intelligence Firm MicroStrategy created a massive buzz by announcing BTC purchase worth $425 million. Earlier this week, MicroStrategy CEO Michael Saylor disclosed how the company decided to pour almost half-a-billion dollar of their cash reserves into Bitcoin.
Saylor also made some interesting revelations during his hour-long podcast interview with crypto evangelist Anthony Pompliano. Making some interesting observations from this interview, popular crypto analyst Willy Woo predicts how big industry giants can follow MicroStrategy.
Big economists have already predicted inflation rise over the coming year and sitting over the pile of cash doesn’t make sense. Saylor said that over 35,000 public traded companies have a collective cash pile of $5 trillion with negative returns.
Thus, they looking to put this cash at work by disposing of into assets that are not overvalued. If we look at the stock market, we have already seen a massive bull run post the March 2020 crash. The tech sector, which is the only performing one, has seen a massive rally with companies like Apple and Amazon attaining all-time-high valuations.
On the other hand, the commercial real estate also looks marked up at this stage. Thus, Willy Woo thinks that the best option here is nothing but Bitcoin!
There's not a lot of inflation sheltering assets that you can easily sink large capital into that are not overvalued already. Tech Stocks are pumped high, commercial real estate is marked up and hard to deploy into.
Bitcoin is 100x or 1000x better than Gold.
— Willy Woo (@woonomic) September 18, 2020
More Companies Can Possibly Allocate Their Assets to Bitcoin
Woo says that Bitcoin holds an edge over Gold as it is much easy to transfer in comparison to the yellow metal. At present Bitcoin market cap is $202 billion with 57% domination in the overall crypto market. As per MicroStrategy research, real Bitcoin dominance is 92%.
Thus, Woo predicts that if 1% of the spare cash with some big companies comes into Bitcoin, the world’s largest cryptocurrency can easily 10x from these levels going to $2 trillion. This might sound a bit optimistic but certainly not out of reach.
Besides, the MicroStrategy CEO explained how they took 6 months to acquire 38,500 BTC. Thus, other public listed companies can take the next 9-12 months to get their BTC loaded. Well, it’s a clear indication with all the current consolidation of Bitcoin, 2021 could be interesting.
MicroStrategy, a nimble publicly listed company, took 6 months to approve and complete their deployment into BTC.
The average publicly listed company may take 9-12 months for the same process.
(start your timers, 2021 will be interesting)
— Willy Woo (@woonomic) September 18, 2020
Dropping the ultimate curiosity bomb, Woo suggests that Twitter CEO and Bitcoin proponent Jack Dorsey holds $10 billion in cash reserves. Thus, we can expect him to make an entry anytime soon.
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