Just a day before the Bitcoin 2017 bull-run reached its peak, Jeon Ik-soo, announced that he was retiring. At the time, he was one of South Korea’s top esports players, and he retired to enter full-time crypto trading.
When Bitcoin’s bear market started, he had to quietly make a return to pro-gaming. Nevertheless, his surprising decision diverted esports fans’ attention towards crypto. One such person was Joseph Edwards, an Oxford graduate, and professional esports coach. Then, he worked as an analyst for teams in Brazil and North America. Now, he plays a different role.
The head of research at Enigma Securities, Joseph Edwards, called that Bitcoin prices will reach highs of $60,000. Enigma Securities is a London-based crypto form that focuses on treasury and liquidity solutions. According to him, crypto and pro-gaming naturally overlap. In both domains, hustlers need to go the extra mile.
Despite only working in the crypto industry for two years, he’s had success forecasting Bitcoin prices. Last year, Bitcoin went above $20,000 for the first time around December. At the time, he issued a research paper, outlining the cryptocurrency’s path towards $60,000. Eventually, the flagship digital currency cleared that milestone in March.
If Bitcoin reaches just 10 percent of the gold market cap, it will reach a value of $60,000, according to his note. Currently, Bitcoin is going just below $40,000. This happened after a short-squeeze caused gains of over 22 percent in the last week. Joseph Edwards expects that another short-term spike is on its way. Then, further drawdowns will follow in September.
The upcoming factor causing price increases will be due to the shift in retail-based crypto derivatives. He stated that crypto derivatives’ collateral has always been in Bitcoin. But recently, traders are relying on Tether, a stable coin, or USD, as collateral. This is causing about 64 percent of all open interest to be in USD.
He clarified that if investors hold Bitcoin as collateral, it will have less of a value over time. SO as the prices reduce, they get liquidated easily. On the other hand, collateral prices are rising, so it’s difficult to become liquidated if you’re shorting the market. Joseph Edwards believes that the current break is the result of collaterals being in USD. This can cause shorts to be squeezed and liquidated.
In the next month, another similar squeeze can send Bitcoin to the range between $45,000 and $46,000 next month. Nevertheless, as regulatory actions are taken in September, Bitcoin will face lows. He is betting that in the long run, Bitcoin can go as high as $250,000 within the next few years. It will be approximately 20 percent of the gold market cap by the. Moreover, the crypto market will be worth around $10 trillion.