Bitcoin price retreated for two straight days as it struggled to break through the important resistance point at $70,000 on Monday. It fell to $67,435 on Tuesday, down from this week’s high of $69,300.
Billionaire Paul Tudor Jones is bullish on Bitcoin
Billionaire Paul Tudor Jones, who predicted the global financial crisis, has maintained his optimistic view of Bitcoin and gold.
In an interview with CNBC, he explained that his arguments in favor of these two assets were the skyrocketing US government debt and long-term inflation.
Recent data shows that total public debt has increased from around $10 billion in 2010 to more than $35.5 trillion today. And that number is growing by about $1 trillion every three months.
Worse still, Donald Trump and Kamala Harris have not shared real deficit reduction plans. Trump, who runs Polymarket, said he would support more unfunded tax cuts, which are expected to lead to a $7.5 trillion deficit over ten years.
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Harris, for his part, has pledged to spend more on housing, climate and other issues. His plan will be partly financed by tax increases and will result in a $3.5 trillion deficit over a decade.
Therefore, analysts, including those at Blackrock, I think Bitcoin is a better asset for investors who are afraid of the United States and global debt. Additionally, unlike the US dollar printed by the Federal Reserve, Bitcoin has a limited supply, which is running out.
Meanwhile, hedge funds have continued to accumulate Bitcoin and related ETFs. Data shows that these institutions hold more than 20% of all ETF shares, a number that could continue to grow.
Some of the largest institutions that have purchased Bitcoin include Blackrock, Citadel, Susquehanna, and Fidelity. A report also showed that 47% of traditional hedge funds had invested in Bitcoin.
More importantly, businesses will likely be inspired by the success of MicroStrategy and start accumulating Bitcoin. A few years ago, MSTR was a small IT company active in the data analytics industry. Today, he holds 252,000 coins worth $16 billion and his valuation has grown to $42 billion.
Tesla, which recently transferred Bitcoin worth $765 million, still holds 9,720 coins worth $655 million, according to BitcoinTreasuries. Other major companies holding Bitcoin include Coinbase, Block and Semler Scientific.
Bitcoin Price Forecast
The daily chart shows that BTC price peaked at $69,300 this week and then retreated. This pullback was expected due to the importance of the $70,000 resistance point.
Bitcoin has broken out above the descending trendline that connects the highest swings since March. This was also the inverse head and shoulders chart pattern.
More importantly, Bitcoin formed a golden cross as the 50-day and 200-day weighted moving averages (WMA) crossed.
Therefore, the outlook for the coin is bullish with the next point to watch being at $72,000, its highest level in May and June. A break above this level, followed by the all-time high of $73,800, would indicate further gains, potentially up to $100,000. For the most part, CoinGlass data shows that November is generally the best month for Bitcoin.
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