Head of Digital Assets at VanEck, Gabor Gurbacs, took to Twitter to comment on the current Bitcoin price drop, as well as MicroStrategy’s bet on the leading cryptocurrency.
He has a bearish warning for BTC holders but everything depends on how Bitcoin will move from where it is.
“There could be some serious problems for $20,000”
Gurbacs tweeted a view that aligns with Bitcoin hater Peter Schiff’s that the gold bug was announced on Friday — if Bitcoin drops below $30,000, a quick crash is likely.
Gabor Gurbacs predicts the possibility of BTC dropping to the $20,000 mark if it breaks below $32,000 – he believes that the latter is an important one for BTC. Besides, this is the average price of the total 124,000 Bitcoins held by MicroStrategy currently.
So far, MSTR is down more than 31% year-to-date, so the company lost profits from BTC last year.
Overall, Gurbacs added, how BTC performs this weekend could determine what happens to the market on Monday.
MicroStrategy’s 124,000 Bitcoin vault can be valued at around $30,200 per coin on average. I think it’s one of the important floors. If we drop below $30,200, there could be some serious decline towards $20,000. Bitcoin this weekend could drive what happens to the market on Monday.
– Gabor Gurbacs (@gaborgurbacs) January 22, 2022
Gurbacs also tweeted that there is a lot of liquid capital in the market today that financial institutions are looking to invest. Many of them didn’t get into BTC when it was trading at $10,000 and then missed the rally to all-time high $68,000. So, the chief crypto officer at VanEck assumes that they can jump on the Bitcoin train when the price drops. The reason is that central banks print a lot of cash, inflation is high and many investors do not trust bonds in the current market conditions.
I also note that there is an unprecedented amount of highly liquid institutional capital looking to allocate. Many organizations missed the $10k to $60 rally that can now jump in. CB has printed trillions of dollars, high inflation, and many untrusted bonds. Bullish/rally can go crazy!
– Gabor Gurbacs (@gaborgurbacs) January 22, 2022
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