While some market participants are panicking amid the recent crash, the most fervent HODLers are buying the dip. El Salvador’s president Nayib Bukele just announced a purchase of another 410 Bitcoin for $15 million. A Nation-State Buys The Dip Bukele announced his recent purchase in a tweet moments ago, faking out some of his followers. The president – known for trading the nation’s Bitcoin from his phone – last purchased Bitcoin in December. After bagging 21 Bitcoin for $1 million,…
Max Keiser – host of The Keiser Report and Orange Pill Podcast – has revised his Bitcoin price target. Though his 2021 prediction failed, he has pushed forward the exact $220k estimate to the end of 2022. He uses Bitcoin’s record hash rate to justify his claim, arguing that it positively affects the asset’s price.
$4 Trillion Dollar Asset?
Keiser offered his revised prediction in conversation with Express on Sunday. He said that he was “pushing” his $220,000 price target to 2022, saying that all of Bitcoin’s fundamentals are “screaming higher.”
“The China mining ban last year was a temporary hiccup,” he continued. “I’m on my way to El Salvador where the Bitcoin revolution will expand and push fiat money into extinction.”
Earlier this year, a plurality of mining Bitcoin’s hash power was sourced from China. As a result, when the country banned the asset in May, the hash rate collapsed, alongside Bitcoin’s price. After that, however, the network’s strength fully recovered faster than expected and regularly touched new highs.
This is one of the “fundamental” metrics that Keiser argues boosts Bitcoin’s long-term value. “Hash rate precedes price,” he said in a recent tweet, claiming that an all-time-high hash rate leads to all-time-high prices.
The thesis states that as the hash rate increases, miners’ cost to “mine” new Bitcoin. Therefore, those miners must sell their coins at higher prices to maintain prices, raising the market floor.
Though a commonly held theory, not all agree with it. Will Clemente – an on-chain analyst for Blockware – does not believe the hash rate significantly impacts the price given Bitcoin’s diminishing inflation.
If Bitcoin reached Keiser’s price target, that would put the asset at over $4 trillion in valuation. This is greater than any company globally, including Apple, which recently touched the $3 trillion benchmark.
The Biggest Bitcoin Maxi
Max Keiser is as bullish as they come on Bitcoin’s future, explicitly identifying as “Bitcoin Maximalist” on Twitter. Like other maximalists, he sees Bitcoin as the future world reserve currency which will eventually demonetize all others.
So far, we know very little about his holdings, but Keiser has told people to buy Bitcoin as low as $50.
“I’m just a vessel,” he said jokingly regarding his price prediction. “Satoshi speaks through me. I don’t question what he says.”