Despite the recent pullback of the cryptocurrency market, the British cryptographer and an outspoken supporter of bitcoin – Adam Back – thinks the asset could tap $100,000 by the end of 2022. He also admitted that he kept buying amounts of BTC and HODL for the long term.
No Matter the Crash, Back Remains Bullish
The cryptocurrency industry has collapsed significantly in the past week, causing panic among investors and doubts about whether the asset class could overcome its issues. An example of the minor mood is Bitcoin’s Fear and Greed Index, which dropped to 7 (a level unseen since early 2020 when COVID-19 shocked the world).
Contrary to the negative trend, the CEO of the blockchain technology firm Blockstream – Adam Back – envisioned a bright future for the primary cryptocurrency, forecasting its USD valuation to tap $100,000 by the year’s end.
In his view, the price increase will be triggered if the US Securities of Exchange Commission approves Grayscale’s BTC ETF application. Earlier this month, the company doubled down on its ambitions to convert its Bitcoin trust into an exchange-traded fund by appointing Donald B. Verrilli as additional legal counsel.
Another reason why the cryptocurrency could soar to $100K this year is that Back expects it to decorrelate from stocks and traditional financial markets.
everyone has their pet macro-views. my guess: stock market + US election season, moral hazard kicks up, QE ramps up again, rates drop again, money printer goes into over-drive. so the interest rate overhang falls off. and BTC decorrelates somewhere along the way once defi flushed
— Adam Back (@adam3us) June 16, 2022
Subsequently, the British described himself as a “permabull,” admitting he keeps buying and holding BTC for the long run. He said he does not use leverage, and thus “timing matters not.”
His Previous Forecasts
Two years ago, Back said the global economic situation could boost bitcoin’s price to $300,000 by 2025. He explained that the COVID-19 pandemic caused many people to work from home, which affected the real-estate industry and made property investments riskier.
Additionally, people had more time to “think about the value of money and look for ways to preserve money,” which could push them towards bitcoin.
Back also denied the speculations that he is the mysterious creator of the digital asset – known under the pseudonymous Satoshi Nakamoto.
In April last year, when bitcoin was in a bull run and was trading around $55,000, Back predicted its valuation would tap $100K by the end of 2021. His forecast did not come true despite the fact that BTC surged in November to an all-time of almost $70K.
