Why Do High Net Worth Investors Suffer Despite Market Fluctuations?
As Bitcoin hovers between $90,000 and $95,000, down more than 10% from its recent peak above $100,000, there is a growing divide between traders and long-term investors who expect another fall based on technical analysis. That the bull runs too far.
David Simer, CEO of Wave Digital Assets, which provides asset management services to crypto investors, shared this view. In particular, his company works with high-net-worth individuals and counts Cardano CEO Charles Hoskinson among its clients.
“In the 14 years I've owned bitcoin, I've never seen a dichotomy like this,” Simer said in an interview with Coindesk. “The traders are all stressed and stressed and hedged, completely neutral or worse. And the longs are all extremely bullish,” he added.
In addition, Siemer believes that there is a high probability that Bitcoin will reach $200,000 this year and that it may eventually hit $1 million per coin, though not in the near future. He added that many intelligent and well-connected people are also very optimistic and that significant developments are expected in the next six months than most people think.
Upcoming developments
Simer said that many countries, including the United States, Russia, Singapore, the United Arab Emirates, South Korea, Japan, the Philippines, and some European countries, are planning significant steps to support crypto in the coming year. These measures are expected to benefit the private sector. Siemer notes that relying on governments like Japan and Singapore, crypto regulations will have more impact there.
He also noted that the growing success of US bitcoin ETFs is pushing global financial institutions to compete in new products, such as multi-token mutual funds. Siemer also shared that US Bitcoin ETFs beat global Bitcoin ETPs by higher fees. He believes that regulators will support it, and the European Union can make crypto regulations more favorable.
Bitcoin Reserve
Siemer believes that the creation of a new strategic bitcoin reserve is highly likely, with several countries likely to do so, even if not the US. Wave said it is in talks with seven US states, including Texas, Ohio and Wyoming, about creating reserves.
As for the federal government, Simmer estimates a little better than a 50-50 chance, given that it already owns nearly $19 billion in Bitcoin. He suggests that the government could easily seize this bitcoin, which is more acceptable than buying more.
The long-term outlook remains positive
Recently, Grayscale said that Bitcoin's price outlook remains “structurally bearish” despite a temporary headwind from macroeconomic data. The head of research at Greyscale said bitcoin appeared to be held up by the US dollar, which is increasingly hawkish on federal policy and tariff concerns.
However, he believes that the recent fall in the crypto market may be short-lived, as the US presidential inauguration is approaching. He maintains a positive long-term outlook for crypto prices.
