- Samson Mow excluded the possibility has no doubt that Bitcoin will not trade below $50,000 when the next trading crash happens because there is ample money below $50,000.
- Mow uses the incident that occurred on 2nd August 2022 when the crypto market dropped by 15% with Bitcoin trading at slightly above $49,000. Nevertheless, Bitcoin arrived back after the US market opened for trades and operations.
- Mow’s assumption here is that there is a lot of latent demand from buyers willing to buy Bitcoin at $50,000 or below in a black swan fear mode that will stop Bitcoin prices from falling back to $50k.
The Crash is Not New to Bitcoin
More recently one of the most decisive Bitcoin advocates under the name of Samson Mow has reacted to the theories regarding the occurrence of black swans that may bring the BTC price below $50,000. Mow used this to argue that Bitcoin had a potential of sustaining it value in the major markets that experienced crashes so soon as trading began in the US markets.
For instance, he noted the one that occurred in the crypto market on August 2, 2022. In that crash, Bitcoin dipped below 15% with the currency trading at slightly above $49,000 which was the lowest it had traded at since the beginning of the year. However, Mow pointed out that Bitcoin rose right back as soon as the US markets opened after the crash.
From this perspective, Mow supposes, Bitcoin will not trade below $50,000 in the next trading crash as it seems that there is enough capital accumulated below $50k to buy Bitcoin.
A Thrust for Bitcoin to Crash: Theories
The theories that back this up that Bitcoins will first only sell during a ‘black swan’ is under the premise of a high level of liquidation to other leveraged asset positions in an attempt to minimize losses. Still, as per proponents of this view, it was going to be tough for a while and then the market – particularly of BTC – was going to rocket back to new highs in a V-shape.
Self evaluation of the Bitcoin Resilience as assessed by Mow
However, Mow does not agree with the theoretical potential Bitcoin crash extent placed forward by these theories. In the next days as Bitcoin rebounds as soon as US markets open, he does not see it going below $50,000 in some theoretical Black Friday kind of event where everyone dumps their holdings.
That is, Mow’s analysis is based on the assumption that there is a huge pent-up demand from buyers to purchase Bitcoin at $50,000 or below during black swan fear mode, such as a crash. This buyer demand would, therefore, put a floor on Bitcoin prices, such that they could not drop back down to $50k.
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