Bitcoin (BTC-USD) has been in focus lately, as the Bitcoin 2022 conference in Miami recently had investors’ attention. Unveiling a new Bitcoin bull (complete with laser eyes) added to the news, but at the heart of the cryptocurrency conversation lately, investors are looking at where the risk is coming from.
At the conference on Thursday, Peter Thiel said Bitcoin has the potential to be on par with the $12 trillion gold market. One day, it could even grow to the size of $115 trillion public equity (PE) market. He also stated that Warren Buffet is the “enemy” of Bitcoin and referred to him as the “sociopathic grandpa from Omaha.”
Thiel no doubt knows his way around the tech industry and the PE world, but let’s give the Oracle some respect. Is Buffett a fan of Bitcoin? No. But is it fair to say that he is an enemy of the cryptocurrency? Likely not.
Instead, many bulls are distrusting of regulators.
Last month Biden announced he signed a long-awaited executive order for the government to look into the risks and benefits of crypto. The main focus will be in six areas: consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion and responsible innovation.
If Buffett and regulators are considered an enemy, Ark Invest CEO Cathie Wood would be considered one of its knights. She believes that by 2030, Bitcoin’s price will be at $1 million. She recently noted that:
“Banks have a big problem. They’re losing talent to crypto, so they’re having to raise wages to attract talent, and they’re losing business to DeFi. Lending and saving — a lot of it is taking place in DeFi right now.”
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Last week, Bitcoin was pulling back from the 200-day moving average and channel resistance. At the time, we said it needed to hold the midpoint of the channel and the 50-day moving average. Instead, it’s rolling over on Monday morning, along with other “risk-on” assets.
With the move, Bitcoin is below all of its short-term moving averages. If it continues lower and fails to reverse, it’s not out of the question to see the $37,000 area. There it finds support from last month’s low and channel support.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
