So, there are these other companies jumping on the bandwagon after Michael Saylor's lead, starting to scoop up bitcoin to keep in their treasuries. Seems like they want to boost their stock prices. What do you guys think? Could this kick off another inflated bubble that eventually pops, dragging bitcoin down like we've seen before?
I heard about a hedge fund manager who’s been losing cash on his investments and now he’s setting up a treasury company. I get it’s for an altcoin, but the same concept could work for bitcoin too. Is this going to be the next bubble that bursts?
Joe McCann, who’s the founder and CEO of the crypto hedge fund Asymmetric Financial, is about to run a new Solana (SOL) treasury company called Accelerate, according to some documents that got leaked to Unchained.
They’re planning to go public through a SPAC with Gores X Holding. Funny timing for McCann, huh? He’s been the subject of industry gossip lately since his fund’s liquid assets are down 80% this year. Meanwhile, the whole crypto market has gained almost $600 billion this year, and bitcoin hit an all-time high above $123,000 just last week.
Well isn't it what the historical logs of Bitcoin shows? I mean it's a speculated asset for all we know, and then we will have the bear (market is down) and the bull run (price is pumping). Same story with altcoins although we have seen that it has decoupled already with Bitcoin so who knows what's going to happen for them in the long run. But for Bitcoin market, the only thought we have is that we might see super-cycle. But for me it will still be the same pattern or cycle, we will have a huge bull run every 4 years. Supply is going to dwindle overtime and so there will be a race for us and those hedge fund companies to get as much as they can. And as what Saylor preach, just continue to accumulate, the longer the bigger and then HODL. So bubble pops and then the a new cycle begins. Unlike the tulip bubble centuries ago, when it pop, it didn't have the chance to recover because of the circumstances.
Bitcoin would have to take a huge pullback to get Michael Saylor to liquidate his positions but with these other companies it might not be possible. They are buying near the top and if it peaks and they are forced to liquidate it can cause a huge liquidation event kind of like Mtgox 2014, November 2018, Covid 2020, or FTX 2022 bankruptcy.
With Bitcoin there is always something to pop the bubble. Who knows, in 2026 it might be all these companies creating these treasury companies. I don't know how the rules are exactly and when and if they would need to liquidate their crypto however it doesnt seem like a safe investment to keep stocks in those companies when it starts to crack.
It seems unbelievable that you have been a member of this forum for so long. There would be a bubble if bitcoin were worthless. You think bitcoin is worthless? On the other hand you don't seem to understand how bitcoin treasury companies work.
I think bitcoin can never undergo a bubble pop because of bitcoin volatility and total decentralization. I think we need to understand what Bubble pop does before we correlate it with bitcoin, this is act is when a coin suddenly or rapidly pumps up due to hype and then dumps immediately. Bitcoin cannot have a bubble pop because bitcoin price pump isnt base on hype but rather on real demand through utility and adoption.
Bitcoin volatility has continued to be more stable to such a place where it cannot dump to some certain price again. Most of this coins that experience bubble pops are those that usually are just centralized like the coin is been held more by few investors, this coins you will see one holder holding more than 5% of the coin and when they sell it affects the price or bubble pop happens when everyone sells after the hype dies down.
In all of this cases bitcoin doesnt have any of these reason to have bubble pop, no single holder has more than 10% holding of the coin, investors can not sell at the same Time as most have even embark on holding for a very long time. In most bearish market bitcoin can realistically only fall like 65% down and this is if it is accompanied with bad fundamentals
So yes bitcoin cannot go through Bubble pop
I am also very surprised with bbc.reporter for this kind of topic. I read this link but I do not know how it is even related to bitcoin and what he is talking about. I mean this in total and the link:
What I know is that bitcoin is not a bubble at all, it is an asset and it is the best performing asset since 16 years ago.
I'm also convinced that Bitcoin is not a bubble; it never has been, and it never will be.
This may happen to some altcoins whose market value has inflated far beyond their intrinsic value, but I don't see this example applying to Bitcoin.
Bitcoin is an asset with real value and grows over time. Also, don't forget that Bitcoin is inflation-resistant due to its limited supply.
Robert Kiyosaki predicted that Bitcoin was a bubble and would burst a long time ago, but he has so far failed.
It also very much is unbelievable that you do not understand what are market bubbles or you cannot believe that market bubbles will be an occurrence on very speculative markets similar to bitcoin. Considering that a -70% or more dump from the top that has occurred already 3 times on bitcoin is not a bubble pop? This would be very headshaking if you say this, I reckon.
In any case, it appears that there are people replying in this thread do not know what is a market bubble and it also appear they define a bubble as something similar to a ponzi.
You are getting it wrong. We are no more in 2016 or when you are talking about. If bitcoin is $120000 and you think it will get to $36000 which is 70% of it value taken? I do not think so.
But what if bitcoin get to $36000 again? That does not take its increasing value nature away. Bitcoin will later get to all time high again and again which makes it not to be a bubble pop.
Refer to altcoins when you are talking about bubble pop. It is altcoins that would be pumped, get dumped and not get to all time high again. That makes altcoins bubble pop.
@_act_. It appears that you also do not understand the definition of a market bubble and you also have not understood what was written in my original post or what this implies. Your arguments are incorrect because your thoughts on what is being argued is wrong.
Been hearing about this since I've entered newly to the market. Many did said that bitcoin's a bubble and when it bursts, it will never get back again.
Did it bursts? is it a bubble? these people will never stop in saying that and they'll have hard time to accept that it's growing naturally and isn't in a bubble. The house and real estate is.
That guy just trying want people to go in panic so that he can buy more. He's more known into silver and bitcoin and that's why if he's saying that bitcoin might burst, it's due to his own personal agenda for wanting to buy more.
Judging by the responses in the thread, I'm not exactly the one saying unbelievable things. FYI, for years it wouldn't be the first time I've talked in this forum about the difference between a bubble as a Ponzi scheme and a bubble as an overheated market that values assets well above their objective value.
If the "Bitcoin treasury companies" get overleveraged and finance bitcoin purchases through debt, then it poses a risk to the entire market that when the price goes south and reaches a certain level, those companies will be forced to sell. And when they do a mass sell-off, the price would go even lower, triggering another liquidations.
So I'm not a big fan of such companies getting too much share in the market, and that's what their strategy essentially is, i.e. keep buying bitcoins, so the price keeps going up, so their assets value increases so they can raise/borrow more funds to buy more bitcoins.
If this model doesn't collapse, in a long enough time scale, such entities will be holding the vast majority of bitcoins in existence (excluding lost coins etc), while the "normal" users will only have a small fraction of the supply left for them. It sounds like a good news for the price at first, but do we really expect people to trust a coin which value can drop overnight by over 90% if the shareholders of one of such companies decide (or are forced) to sell? Or if they get hacked etc?
So for those who are into bitcoin for a short or medium-term profits, companies with such business model are very good news, but for long-term holders or those who are into Bitcoin for more than just a quick financial gain - not so much.
nope once the bubble bursts that the end of what is in question.
BTC would no longer be an investment option
btc is not and has not had a bubble burst.
https://www.youtube.com/watch?v=tDjFE0SrBU0
above happened is what happened to tulips as an investment product.
not btc.
by the way if it does happen to btc it would be if someone invents a new math yet to exist that can solve sha-256 as if it is magic.
It appears there are still people who have not understood what is the definition of a market bubble and also arguing that because bitcoin has reached some acceptance from the government and from traditional finance then it will not die. I am sorry, however, on a very long time horizon our society including bitcoin might not exist and it might be studied as another bubble, the other definition, similar to the South Sea bubble on 1720.
It is very headshaking that humans are very arrogant and have forgotten the realities of life. In any case, the definition of bubble I am using is a market bubble only where they form on bull markers causing prices to be unsustainable. But according to this article it might not occur this year.
Bitcoin price has long followed a familiar rhythm: every four years, a halving slashes the new supply of coins, setting off a bull run. Then, when the price gets too frothy and sentiment a pinch too euphoric, traders take profit and the price nosedives into a bear market.
That playbook is now dead, according to Matt Hougan, chief investment officer at Bitwise.
The forces that have created prior four-year cycles are weaker, Hougan said on X on Friday. The halving is half as important every four years, the interest rate cycle is positive for crypto, and blow-up risk has attenuated.
For Hougan, the structural forces behind Bitcoins classic boom-and-bust cycles like the halvings impact on supply are weakening. Meanwhile, a new macro and regulatory environment is working in Bitcoins favour.
Read in full https://www.dlnews.com/articles/markets/experts-explain-how-bitcoin-price-cycle-is-changing/
Thats not a bubble pop in Bitcoin but a premium failure in the companies who buy BTC and hope to gain more in stock valuation then they just purchased on the Bitcoin. For as long as that worked, its a great strategy and when it doesnt it will stop.
Thats not to say that the Bitcoin itself was only rising from companies buying it for holding. Its just a normal dynamic that when one company finds some advantage others will compete with that method whatever it might be.
So I dont think BTC suffers greatly but it might lead to some weakness if previous buying or speculative holding of this type were to unwind, I dont believe thats been the majority or only buying this year so far as I know. I generally rate the consumer the average public non commercial user as the main driver of the market overall.
Of course, don't let reality spoil your anti-capitalist prejudices. Strategy's debt is not convertible to bitcoin, so what you're saying is nonsense, besides the fact that it fluctuates between 15 and 20%, which is a very healthy ratio under financial standards. Another thing you'd have to explain is how, in the previous bear market with a 75% decline and debt convertible into bitcoin, Strategy didn't sell a single bitcoin, but you say so much nonsense based on prejudice that I'm sure you're not going to let reality debunk it.
Sure, you keep doing your thing.