In a recent interview with the ‘closing bells’ of CNBC, the former CEO of Binance.US discussed Bitcoin (BTC) and how ‘some things are going on short-term’ that are negative for the token.
Brian Brooks, the CEO of Bitfury, said that the asset’s short-term price decline was due to the Fed’s recent meeting minutes, where it was evident that the bank was set to remove stimulus from the economy to fight the hike in prices. He added,
“The Fed is introducing some mild inflation strategy for 2022. Due to bitcoin’s potential as a hedge against inflation, there are going to be some modestly negative effects on price.”
Bitcoin to achieve equal status with gold?
Brooks was bullish on BTC in the medium-term because of certain knowledge found in a recent report of Goldman Sachs. According to the report, Bitcoin is 20% of the global store of value asset when compared to gold. He believes that the BTC token could hit $100K and achieve equal status with gold as a store of value asset.
The report showed that the world’s largest crypto asset returned 60% in 2021. This was followed by crude oil which was at 55% and 29% for the S&P 500. Seconding Brook’s optimism about Bitcoin, Mike Novogratz of Galaxy Digital opined,
“I’m not nervous in the medium-term, but we’re going to have a lot of volatility in the next few weeks.”
When asked about Bitfury’s viability in light of the recent price action, Brooks said that the profitability of BTC mining is only partly related to the token’s price and that it’s about the hash rate and the ones that can grab the most market.
In light of recent events, Bitfury has engaged partnerships with renewable energy providers. The CEO, Brooks, opined that the company will have Initial Public Offering (IPO) in the USA.
Over the past few weeks, cryptocurrency prices were seen taking a plunge, but thankfully, they seem to have risen for the better in the last few days. At the time of writing, Bitcoin was priced at $43,954.23 and had risen by 2.42% in the last 24 hours.
