Bitcoin, Even $75,000 Is Not Expensive?..."Now That the Speculative Bubble Has Burst, This Is the Opportunity"

▲ Bitcoin (BTC)

A bullish argument has emerged that now, while Bitcoin (BTC) remains near its long-term trend growth rate without speculative overheating, is precisely the buying zone before the next expansion phase.

Money ZG, a cryptocurrency YouTube channel with 758,000 subscribers, stated in a video uploaded on May 27 (local time) that the current Bitcoin market shows little of the speculative fervor or excessive expectations seen during past bull runs. Money ZG asserted, "Even if Bitcoin is at the $70,000 to $75,000 level, it is not an expensive price compared to its long-term trend," adding, "This is a period when strong assets can be purchased without a speculative premium."

The video also noted that many of the conditions necessary for the next bull market or expansion phase are in place. Kevin Warsh has been identified as a relatively dovish figure on interest rates, and with the Middle East conflict showing signs of easing, the possibility of oil and gas price declines has increased. Furthermore, it analyzed that if energy prices fall, both governments and markets would be relieved of burdens, and the room for interest rate cuts or liquidity easing could expand.

Money ZG stated, "In the past, catalysts like Bitcoin spot ETFs, blockchain utilization, and circular economy were needed for a rally," but added, "Now, Bitcoin does not necessarily require new catalysts." The core argument is that Bitcoin is structurally superior to gold, major stock indices, and other store-of-value assets. It also added that even if only a few percent of global savings shift to Bitcoin, it would be sufficient for a long-term ascent.

Increased money supply and expanding debt were also presented as grounds for Bitcoin's long-term bullish outlook. Money ZG argued, "The supply of fiat currencies, including the dollar, cannot decrease in the long term," and "Just as the prices of cars and daily necessities rise over time, Bitcoin, with its scarcity and preference, is highly likely to continue increasing in value against fiat currencies." Regarding Donald Trump's statement about solving debt through growth, it was interpreted as actually meaning to pursue both currency issuance and productivity growth.

The video presented Bitcoin's 200-week moving average growth rate at 20% to 30%, comparing it to NASDAQ's approximately 20% and S&P 500's approximately 12% to 15%. Money ZG explained, "If you invest $1,000 in the S&P 500 at 12% per annum for 10 years, it becomes about 3.1 times, but if Bitcoin grows at 25% per annum, it becomes about 9.3 times." The argument is that small differences in annual returns create large asset gaps in long-term compounding.

Money ZG likened Bitcoin to an iPhone and gold to a BlackBerry, emphasizing Bitcoin's greater long-term growth potential compared to traditional store-of-value assets. While it might consolidate for about 5 to 6 months in the short term, the current price is considered not overheated relative to the trend. The video concludes that Bitcoin can outperform the S&P 500 and NASDAQ in the long term, based on increasing fiat currency supply, expanding debt, demand for store of value, superiority over gold, and higher growth rates compared to stocks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*