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"Coin Mina": Bitcoin will rise.. and the "Federal" decision may be a bullish catalyst
The co-founder of Coin Mina, Talal Al-Tabba, stated that the cryptocurrency market has witnessed a decline in liquidity levels over the past two months, noting that last October experienced significant pressures after several liquidity providers faced issues that led to a noticeable drop in the market.
Al-Tabbakh indicated in an interview with "Al-Arabiya Business" that the largest asset manager in the world, Larry Fink, the CEO of "BlackRock," says that "Bitcoin has become a tool for building wealth."
Al-Tabbakh clarified that despite this recent decline, the drop to levels of 80,000 dollars for Bitcoin was accompanied by "very strong demand," confirming that exchange-traded funds (ETFs) have changed the game rules, as they experience what he described as a "demand shock" every time prices fall.
Prices are likely to rise.
As for his expectations for the coming year, Al-Tabbakh stated that Bitcoin's volatility is "natural and expected," as its value is measured against the dollar, which constantly changes in purchasing power. However, he confirmed that the long-term outlook clearly shows that "the general trend for Bitcoin is upward," despite the apparent short-term fluctuations.
He added that the recent decline in market liquidity does not negate expectations of price rebounds, especially when the U.S. Federal Reserve decides to lower interest rates, noting that "the U.S. deficit has become a problem, and this will push the Fed to lower rates, which benefits assets that benefit from declining interest rates like Bitcoin, gold, and real estate."
Al-Tabbakh stressed that the supply of Bitcoin is the most clear and predictable element for decades, unlike the dollar and stocks, whose size or future value cannot be known because human decisions - like the Federal decision this week - directly affect them.
He considered that the upcoming Federal decision next Wednesday will be a "positive and bullish catalyst for cryptocurrencies, especially Bitcoin."
Bitcoin is a neutral asset.
Al-Tabbakh explained that those who believe in Bitcoin and gold and what is known as "hard assets" see that relying on the decisions of the U.S. Federal Reserve to determine the fate of global money is no longer logical, saying: "We are waiting for human beings like us to meet this week to determine the fate of money and currency in the world, and this is unnatural."
He affirmed that Bitcoin and gold are "neutral assets that cannot be manipulated to achieve government goals," adding that the U.S. government's objectives related to inflation and interest rates differ from those of individuals, which is why those who believe in Bitcoin see that reliance should be on an asset that cannot be manipulated. He considered that the joining of major figures like Larry Fink to this trend reflects the growing conviction that Bitcoin represents a way to save and build wealth "outside the control of the U.S. Federal Reserve."
Relative correlation with traditional markets.
Regarding the correlation of digital currencies with traditional markets, Al-Tabbakh affirmed that Bitcoin is still classified as a "high-risk asset," and therefore often moves in similar directions to technology company stocks like "NVIDIA," but he emphasized that there is no complete or stable correlation.
He explained that Bitcoin is a relatively recent asset that started in 2009, compared to gold, commodities, and bonds that have data extending for hundreds or thousands of years, making it impossible to assert critical correlation relationships so far.
The exit of institutions from major positions is not correct.
Al-Tabbakh responded to opinions suggesting that institutions are reducing their exposure to Bitcoin, saying that this is "not true at all," considering that those who express this opinion "may not own Bitcoin at all."
He pointed out that the BlackRock Bitcoin Fund (BlackRock iShares Bitcoin Trust - IBIT) has become "the most successful financial product in world history," after its assets surpassed 80 billion dollars since its launch last year, confirming that the majority of investors in it are companies, governments, and large financial institutions. He added: "The results are clear, and this product is the most successful ever compared to thousands of financial products that have been launched throughout history."
