Expert Says Bitcoin is Currently ‘Overhyped’: Can BTC Slip Below $70k Soon?

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Milton Berg, the founder of MB Advisors, recently weighed in on the current state of Bitcoin, especially in the context of its surge to new all-time highs following the 2024 U.S. election. The discussion around Bitcoin’s value and its role in the market has gained momentum, particularly with political figures like former President Donald Trump expressing pro-Bitcoin sentiments. 

Bitcoin’s Price Surge: Speculation or Sustainable Growth?

Bitcoin saw a sharp rise in price following the election, reaching approximately $74,000 to $76,000 per coin. This move prompted questions about whether the spike was simply a “buy the news” reaction to Trump’s win, or if it reflects a sustainable upward trend in the cryptocurrency market.

Berg, however, remains cautious. In a recent interview with David Lin, he admitted that he cannot definitively say what Bitcoin is worth. He likens Bitcoin to a highly speculative asset with no clear or consistent value metrics. According to Berg, Bitcoin’s price is driven largely by market sentiment—specifically, what people are willing to pay for it.

Is Bitcoin Overhyped?

Berg believes that Bitcoin is currently overhyped, pointing out the speculative nature of the asset. In his view, Bitcoin’s value could plummet from its current levels of $76,000 to much lower levels without fundamentally altering the cryptocurrency’s function.

He draws a stark contrast between Bitcoin and traditional commodities like gold. For example, if the price of gold were to fall from $2,000 to $500, people would likely buy gold in bulk, anticipating future demand for its industrial and jewelry uses. In contrast, with Bitcoin, there’s no real underlying demand driving the price. Instead, its value is purely based on what buyers are willing to pay.

Trump’s Bitcoin Reserve Idea: A Step Too Far?

One of the more controversial statements made by former President Donald Trump was his proposal to set up a Bitcoin reserve for the U.S. government. Trump suggested that the U.S. could purchase Bitcoin and hold it as a part of the nation’s reserves. However, Berg dismisses this idea as misguided, saying that the U.S. government no longer operates like a creditor nation but instead is deeply in debt.