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Kevin O’Leary says he could start a Bitcoin mining operation this year

  • O’Leary says many sovereign funds are looking to invest in Bitcoin mining operations and that the next two to three years could see massive inflows into the sector.

  • He also believes institutions are keen on companies that are compliant with government and local community regulations.

  • He could dive into the mining operations himself this year, he added.

“Shark Tank” star Kevin O’Leary is positive about Bitcoin mining as an investment strategy and says he’s probably going to start his own mining operation sometime this year.

The Canadian businessman shared his plans in an interview with Anthony Pompliano, noting that Bitcoin mining was likely to see huge capital inflows over the next two, three years.

O’Leary says he’s been able to talk to investors across various jurisdictions, especially in the Middle East and the lesson learned from these travels is that many are looking at investing in Bitcoin mining via their sovereign funds.

While he predicts a majority of countries will eventually start mining Bitcoin, the O’Shares Investment Advisors chairman says the operations will want to do so in a manner that supports environmental sustainability. He says that this is because funds will want to steer off recent controversy relating to Bitcoin mining.

“Once a sovereign fund decides it is going to invest in Bitcoin, it’s going to want to mine it sustainably and ethically,” he said.

He notes that ESG (Environmental, Social, and Governance) demands and other compliance issues are top of the list for these investors. Other than that, these non-financial factors are a part of his own considerations before investing.

It’s also the approach O’Leary will look to apply when deciding how he’s going to invest in the sector, he noted.

The celebrity investor also revealed that he has for a long time envisioned running a crypto mining operation, noting that he would “probably do it in this calendar year.”

On what mining companies need to do to attract investors, O’Leary says regulatory compliance is a must. The companies also need to ensure they involve the local communities, with a proper and clear understanding of how some of the returns go back to the community.

He also noted that a lot of institutional capital will be flowing into crypto mining over the next couple of years. However, he feels that the inflows might only come if investors believe the exposure to BTC through equity that they are getting is from a company that has adhered to all the regulatory requirements.

These investors need to see the mined coins as part of the particular mining firm’s balance sheet, something that will give institutions and funds the confidence to buy and hold the crypto stocks.

Marathon Digital Holdings, Riot Blockchain and Hut 8 Mining are some of the top mining companies whose stocks rose significantly as Bitcoin price jumped to a new all-time high in 2021.

The post Kevin O’Leary says he could start a Bitcoin mining operation this year appeared first on Coin Journal.

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Bitcoin’s price could deflate below $30,000 in 2022, Invesco says

Invesco’s Global Head of Asset Allocation likens Bitcoin’s staggering rally in 2021 to a financial mania, saying it could deflate to see BTC reach lows of $30,000 by October.

Bitcoin’s price could drop below $30,000 this year if the crypto bubble bursts and follows historical patterns seen in other crashes, an investment strategist at Invesco has said.

According to Paul Jackson, the Global Head of Asset Allocation at the investment firm, there is a possibility of this happening as the “mania” that drove Bitcoin to highs of $69,000 in November wanes.

In his forecast of the “improbable but possible outcomes for 2022”, Jackson says the year could see BTC price eventually post a 45% dump from its peak. And with bubble crashes extending for much longer, it’s probable the flagship cryptocurrency could end up valued at less than $30,000 from around October.

„The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash,“ the Invesco strategist said.

The reference to 1929 relates to the stock market crash that hit Wall Street beginning Black Thursday on 24 October. By the following week, Black Tuesday happened as a sharp sell-off wiped off billions of dollars from the market.

„We know how that ended and Bitcoin has already fallen to around $42,000 (as of 7 January 2022), following closely the downward path of our mania template,” he added.

Jackson said that a bubble crash template features a 45% dip that occurs over the 12 months following an asset’s peak, which he called “a typical financial mania.“

In this case, he speculated, Bitcoin price could decline to lows of $37,000-$34,000 by the end of October. He then believes a potential trajectory tracking historical bubble patterns could push BTC below the $30k level given typical booms extend their burst over a further two years.

„Hence, we think it is not too much of a stretch to imagine Bitcoin falling below $USD 30,000 this year,” he stated.

But Jackson was quick to note that the forecast could still be wrong, as was the case of last year’s prediction of Bitcoin diving below $10,000. According to him, there’s a “healthy chance” of the cryptocurrency tagging last year’s upside cycle.

Bitcoin fell below $40,000 earlier last week but quickly rebounded to test resistance near $44,000. The cryptocurrency’s price has however tracked sentiment across the broader markets.

Analysts have pointed out that Bitcoin has been trading in lockstep with stocks, suggesting a fresh decline in traditional assets could be replicated in crypto or vice versa. Since late last year, one of the macro pressures on equities has been the Fed’s indication of an interest rate hike in Q1, expected to be early March.

Bitcoin is trading around $41,685 as of writing, nearly 3% down in the past 24 hours.

The post Bitcoin’s price could deflate below $30,000 in 2022, Invesco says appeared first on Coin Journal.