Last week, the founder of Skybridge Capital confidently predicted Bitcoin’s price to reach $170,000 and mind you, that’s the minimum figure among all the mentioned ones. Binance exchange is now reliable in a literal sense, like a Swiss bank. Bitcoins are worth more than luxury watches, and scientists have dispelled the myth that Bitcoin mining is harmful to the environment. They even concluded that it might help promote green energy. Let’s delve into the details of this week’s top news together.

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Skybridge Capital’s head believes Bitcoin (BTC) will rise to at least $170,000 post-halving

Anthony Scaramucci, the founder and managing partner of Skybridge Capital, is convinced that Bitcoin (BTC) will rise to a minimum of $170,000 after the halving in April when the influx of new Bitcoins entering circulation is declining again.

“Go back and look at the Bitcoin halving cycles,” Scaramucci said on Scott Melker’s podcast. “The day Bitcoin halved, multiply it by four [and] 18 months later, and it’s been uncanny that that’s been the price of Bitcoin.”

I’m using the figure of $35,000 after the halving, and that’s being conservative… Let’s say we start with $50,000 in April, then we’re talking $200,000. Say we hit $60,000, and boom, we’re looking at $240,000.

Source: Coindesk

As for his long-term target, Scaramucci envisions Bitcoin easily reaching half the market capitalization of gold, leading to a coin price of approximately $400,000. 

Scaramucci and the Bitcoin ETF

Scaramucci also praised BlackRock’s CEO Larry Fink for “doing his homework” on Bitcoins and changing his mind on this asset. He revealed that he was an early adopter, investing in BlackRock’s Bitcoin Exchange Traded Fund (ETF) even before its approval on January 11. 

In the lead-up to BlackRock’s interest in a Bitcoin ETF, their CEO Larry Fink was, let’s say, not exactly the president of the Bitcoin fan club. But in public interviews, after his company filed for the ETF last June, Fink has changed dramatically, calling himself a “big believer.”

I give Larry credit because Larry really did his homework [on Bitcoin]. You know what I’m wrong about, BlackRock should be a part of this.


Binance Now Allow Traders To Store Crypto in Swiss Banks

Cryptocurrency exchange Binance now allows large traders to store their assets in independent Swiss banks. In November, Binance said that they’ve been exploring the idea of a three-way banking agreement for over a year – a deal involving them, their clients, and a banking custodian. However, they did not disclose the names of the banks.

“Our three-party banking solution is paving the way for a grander entrance into the world of institutional investors. This long-standing model lets investors manage risks while maximizing their capital efficiency, all thanks to the classic move of using traditional assets as collateral.

Exchange Representative, email comment

“I’d rather keep my money in a Swiss bank than trust it with Binance,” declared the head of one cryptocurrency trading firm.

Previously, big-shot traders had to keep their assets on the exchange or with its custodial partner, Ceffu. But now, they can use crypto-friendly institutions like the Swiss banks Sygnum or FlowBank. 

This move might reflect user concerns about Binance’s regulatory dispute in the U.S., which led to a hefty $4.3 billion fine in November. That kind of financial fiasco added to concerns raised by the bankruptcy of rival exchange FTX a year earlier.

Bitcoin Outshines Luxury Watches

What do luxury watches and Bitcoin have in common, many will think? However, much has been written about the relationship between luxury watches and cryptocurrencies. If there’s one thing Bitcoin (BTC) and luxury goods have in common, it’s their scarcity. Both currencies experienced a surge in value during the Covid years, as central banks and governments pumped an unprecedented amount of easy and cheap money into the economy. Meanwhile, crypto traders needed to buy something with their wealth.

The absolute peak in prices occurred at the end of the bullish market in 2021 and the dawn of the crypto-recession in 2022. As anticipated, numerous traders cashed out at the peak and moved on to alternative assets.

Bitcoin and luxury watches were once like two peas in a pod, riding the same wave of positive correlation. That was until the spot ETF optimism swept through the cryptocurrency market in the latter half of 2023. Cryptocurrency prices have now decoupled from luxury watch prices, ending the long-running positive correlation driven by unprecedented monetary stimulus.

ETF Approval Pushes Cryptos

For most of 2023, luxury watch prices and the CoinDesk 20, an index of the largest digital assets, moved in parallel. But then, in the third and fourth quarters of 2023, these two indicators took a divergent turn. The excitement around the Bitcoin ETF started spreading across the cryptocurrency market, propelling the CoinDesk 20 to new heights. In early January, the U.S. Securities and Exchange Commission approved the 11 spot Bitcoin ETFs, leaving luxury watch prices in a kind of monetary policy. 

“Bitcoin, essentially known as digital gold, so it’s not surprising that it’s held onto its value better than luxury watches,” remarked Greta Yuan, Head of Research at VDX, a regulated exchange in Hong Kong, in an email interview with CoinDesk. “The market recently bounced back above the 42k mark, demonstrating strong demand from investors for ‘buying the dip.'”

She points out the institutional interest Bitcoin enjoys, thanks to the ETF, and observes its absence as yet another reason for the price surge.


Global Monetary Tightening Pulls Watch Prices Down

Meanwhile, the global tightening of monetary policy continues to put pressure on luxury watch prices. “The drop in prices is partly due to the tightening of monetary policy and the reduction in speculative trading in luxury goods,” wrote analysts at Morgan Stanley in their January report on luxury watch prices. 

“While prices were relatively stable in the fourth quarter of 2023 and even in December, the market’s overall stats, like the age of inventory and the total supply volume, are holding onto their historical highs,” noted Charles Tian, the founder of Watch Charts, in a note to CoinDesk.

While cryptocurrency skeptics might point to every Bitcoin price dip as evidence of its uselessness, Nick Rack, the COO of ContentFi Labs, is questioning the watch’s usefulness.

“Investors have finally caught on to the empty promises of timekeeping companies,” he remarked in a note. “Their unique selling point of informing owners about the time has long been replaced by modern technologies like smartphones.” 

Bitcoin Mining Offers Revenue Potential for Green Energy Industry

In a study conducted in October 2023, researchers concluded that monetizing excess energy harvested from renewable sources could rake in hundreds of millions of dollars, all thanks to Bitcoin mining.

They claimed that only in the USA, there’s a significant income potential during the pre-commercial development stage of wind or solar power stations. At this point, the farms produce electricity but are not yet integrated into the wider grid. Developers could rake in millions, which they can then reinvest in future renewable energy projects.

Bitcoin Mining is Environmentally Harmful – That’s a Myth

The national-scale electricity consumption, much of it generated by fossil fuels, has led to the belief that Bitcoin mining is an environmental menace. The carbon footprint, high energy demand, and water consumption might be valid concerns, but they’re often used to present just one side of the coin.

Moreover, the Bitcoin mining industry is shifting towards alternative energy sources. According to the Bitcoin ESG forecast, on January 18, 2024, sustainable energy use in Bitcoin mining hit a new record high at 54.5%

Source: CoinTelegraph

The utilization of clean energy by Bitcoin miners contributes positively to the health of the global climate. On top of that, Bitcoin mining has become an ideal candidate for fast-tracking the transition to renewable energy, offering a promising income potential for the green energy industry.

A group of scientists from Cornell University in the USA has determined code to make Bitcoin mining eco-friendly. They’ve figured out that strategically locating Bitcoin mining operations can reduce the environmental impact of cryptocurrencies, serving as a green income stream that can be put towards future investments in renewable energy projects. 

Related: Bitcoin Reacts Negatively to the Fed’s Interest Rate Freeze


And on this green note, we wrap up our digest. Hopefully, helped you expand your knowledge that storing money on Binance is now the same as storing money in a Swiss bank. Unlike Swiss watches, which were known for their luxury. 

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