Six Reasons to Remain Bullish on Bitcoin (BTC) Despite Recent Price Correction

Siamak Masnavi

On September 26, in the middle of a week during which Bitcoin (BTC) lost approximately 20% of its value, Hans Hauge, a Senior Quantitative Researcher at Ikigai Asset Management, found multiple reasons (based on fundamentals) to remain bullish on Bitcoin.

Based on data from CryptoCompare, Bitcoin started last week at $10,011 and finished it at $8,051:

BTC-USD 2-Week Chart on 30 Sep 2019.png

Around 00:00 UTC on September 26, Hauge took to Twitter to calm down those people who are worried about Bitcoin's latest price correction. This was how he started his Twitter thread:

He then proceeded to give five other reasons why investors might want to remain bullish on Bitcoin:

  • Bitcoin hash rate is at an all-time high (despite a minor hiccup on September 24):
  • The Bitcoin inflation rate continues to fall (in log scale):
  • The Bitcoin price continues to rise (in log scale):
  • Quantitative easing in the U.S. looks set to continue:
  • Bitcoin development activity (based on data from GitHub) is still taking place at a healthy pace:

Hauge concluded this thread by saying that based on these reasons he is going to continue HOLDing Bitcoin:

Another person at Ikigai who is quite bullish on Bitcoin's prospects over the next 18 months is Travis Kling, the company's Chief Investment Officer, who told Yahoo Finance in an interview on September 27:

Hard to say what happens between now and the end of the year... but it is our base case that bitcoin makes a new all-time high in the next 18 months -- that’s $20,000.

 

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