adam back

Adam Back, inventor of Hashcoin (which is used in Bitcoin mining) and CEO of Blockstream, shared his thoughts on Bitcoin recently.

Back’s Sentiment

Despite the cryptocurrency market being down significantly from previous highs, Adam Back remains bullish. In the midst of widespread fear and 40-year record inflation levels, Adam Back reiterated a statement from last year in which he claimed Bitcoin ($BTC) would hit $100,000 by year-end. Of course, we now know Back missed his mark on the previous forecast but BTC did briefly surge to almost $70,000 during November.

Responding to a Tweet claiming that Bitcoin would still hit six figures during the next market cycle, Back said that he believes Bitcoin could actually hit $100,000 this year as the DeFi sector crumbles. Wrapped Bitcoin or WBTC is an Ethereum-based ERC-20 asset that represents BTC at a 1:1 ratio. The token allows BTC holders to participate in the Ethereum DeFi ecosystem. At the time of writing, there are around 280,000 WBTC in circulation.

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Bitcoin’s Correlation with the Stock Market

Following Adan Back’s Bitcoin claims, another Twitter user asked if he thought the crypto market would decorrelate from the stock market. Back reinforced the fact that everyone has different views and he was simply making an educated guess. However, he went on to state that as the US election season nears the FED will likely ramp up their quantitate easing (buying long-term securities from the open market) efforts to curtail inflation. Back then said he thinks money printing will “go into overdrive” and Bitcoin would decorate somewhere along the whole process.

BTC DXY chart

Many crypto believers are longing for the day Bitcoin decorrelates from the stock market. As things currently stand, Bitcoin is driven by the stock market which is influenced by the dollar index (DXY). This means, that for a crypto bull run to begin, the stock market must support the idea. Once the crypto and stock markets decorrelate from one another, Bitcoin is free to do as it pleases. Meaning, that we could see a crypto run-up during a stock market stagnation as investors look for inflation hedges.

Many crypto analysts have claimed that for Bitcoin to hit new all-time highs it must first decorrelate. While this reinforces Back’s sentiment, only time will tell how accurate his prediction will be.

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