Significant Bitcoin Upsurge Possibility
Jeff Park, Chief Investment Officer at ProCap, recently narrowed down a key trigger for a significant Bitcoin daily candle rise during a podcast interview. According to him, a black swan event for Bitcoin upside could stem from sovereign adoption.
Sovereign Adoption as a Trigger
For Bitcoin to experience a drastic surge, there should be news of a major developed market or an OECD country planning to purchase Bitcoin, put it on the balance sheet, and actually completing this purchase, according to Park. Sovereign adoption of Bitcoin by a well-established country could act as a high-potential catalyst, potentially driving the cryptocurrency’s value to sky-high heights.
Effect on Bitcoin Value
Such a sovereign adoption announcement, if it happens, could potentially send Bitcoin to around $150,000 overnight. This will represent a blistering 76% spike from its then-reported price of $85,089. However, this surge in Bitcoin prices must hinge on the credibility of the announcement. It cannot result from some marketing gimmick, baseless rumors, or misinterpretation of government officials’ comments, Park stressed.
Nation-State Adoption Is Near
Given the current pattern of crypto market developments, many industry experts believe that nation-state adoption is near. Jan3 founder, Samson Mow, further validated this belief. He said we might be closer to nation-state adoption than many people think. “We’re at the beginning phases of ‘suddenly’, having passed the ‘gradually’ phase,” Mow added.
Impact of Quantum Computing
Another factor that Park mentioned could influence Bitcoin’s price action is clarity on quantum computing resolution. Quantum computing has been a buzzword in crypto circles, with its potential impact on cryptocurrencies divisive and largely contested. Park suggested this uncertainty could be a reason why Bitcoin long-term holders have been selling off recently.
Selling by Bitcoin Whales
Park suggested selling pressure in the market could lessen if there is clarity on the quantum computing issue. According to Glassnode, the recent sales by Bitcoin whales, or large Bitcoin holders, isn’t something unusual. “Long-term holders have been realizing profits throughout this cycle, just as they did in every previous one,” Glassnode noted.
Quantum Computing Shadows
Concern about the implications of quantum computing on Bitcoin has been on the rise. Quantum computing has the potential to disrupt current cryptographic systems, hence posing a threat to blockchain technology and cryptocurrencies. Gianluca Di Bella, a smart-contract researcher who specialized in zero-knowledge proofs, believes the danger posed by quantum computing isn’t a future concern; it is indeed a real and present danger.
Intermediary Measures and Future Path
Bitcoin’s original believers like Willy Woo suggest intermediary measures to counter the quantum threat. One such interim measure involves transferring one’s Bitcoin to a SegWit-compatible address and holding onto the Bitcoin until the development of a quantum-safe protocol.
In conclusion, the prospect of sovereign adoption, combined with increased clarity on quantum computing threats, can significantly change Bitcoin’s price action. With careful observation and well-timed decisions, the uncertainty of these ‘black swan’ events can be navigated to the benefit of the stakeholders.
