Jack Dorsey, the billionaire CEO of Twitter and Square, foresees a strong future ahead for Bitcoin and the cryptocurrency sector.
On a podcast called Tales from the Crypt, Dorsey revealed that he maximizes the $10,000 Bitcoin purchase limit on Square Cash to acquire the dominant cryptocurrency.
On CNBC’s Fast Money, BKCM CEO Brian Kelly outlined three core fundamental catalysts that could drive Bitcoin to its previous highs and a full-fledged recovery in the months to come.
On March 1, CCN.com reported that Bitcoin recorded its first green monthly candle since July 2018.
In technical analysis, a green monthly candle refers to a net monthly gain and throughout February, Bitcoin recovered from $3,413 to $3,791.
Since then, within a week, the Bitcoin price rebounded to over $3,900 as the cryptocurrency market added $6 billion to its valuation.
According to Brian Kelly, the so-called crypto winter is approaching its last phase and is slowing thawing.
The beginning of an accumulation phase fused with strong fundamental indicators such as the rising transaction volume of the Bitcoin network and the noticeable increase in institutional interest will fuel the recovery of Bitcoin until the year’s end.
When you look under the hood of what’s going on with crypto, we’re actually seeing some improving fundamentals.
If you look at the number of addresses that have been created on the Bitcoin network, that’s up about 20 percent from the January lows, it’s apt highs at the levels we saw in the spring of 2018 when Bitcoin was well above $6,000. So Fundamentally, you’re starting to see improvement.
Some high profile investors and endowments have been dipping their toe into the space, add in that you’re talking about Fidelity coming out with custody this week and Jack you know, he understands the payment network.
In every major cryptocurrency market in the likes of the U.S., Switzerland, Japan, and South Korea, a growing number of financial institutions and investment firms have started to commit resources to either invest in or build the cryptocurrency infrastructure.
Jack Dorsey considers the fundamental factors in Bitcoin such as improved scalability through a second-layer scaling solution, the involvement of institutions such as Fidelity and ICE, and the overall increase in interest towards the asset class.
Last week, The Block exclusively reported that as a part of the Bakkt deal, Starbucks is set to integrate Bitcoin payments into their system in the next 18 months.
The move could solve the merchant adoption issue in the cryptocurrency sector once and for all, which is another major catalyst for Bitcoin that has been underplayed.
As an investor in Lightning Labs, Dorsey is driven to lead the Lightning Network to success.
He has reaffirmed that Square, the $31 billion payments giant, will adopt the Lightning Network in the near-term and when it does, Dorsey could single-handedly push the adoption of the second-layer scaling solution.
“And as the part of the Bitcoin network called the Lightning Network, he has said it is only a matter of time, not if but when, that Lightning Network comes to the Square app that Lightning Network allows you to transact very easily at stores and that again could be another catalyst,” said Kelly.
Billionaire investors including Jack Dorsey and Tim Draper are continuously expressing optimism towards the long-term growth and survivability of cryptocurrencies.
The 15-month long bear market has evidently portrayed to investors, especially in the traditional financial market, that cryptocurrencies as an asset class is not a fad and that it has solidified itself as an emerging asset class.