Solv Protocol

Bitcoin

DeFi

Adam Back

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 Other analysts believe Bitcoin entered its parabolic phase. Thanks to this, bullish predictions are flooding in, with targets as high as $250,000 in 2024 and $13 million long-term. Market dynamics, institutional adoption, and liquidity expansion are driving this optimism. Other macroeconomic events, like a potential Bitcoin reserve under Trump, fuel bullish sentiment even more. Meanwhile, Solv Protocol plans to transform Bitcoin into an active DeFi asset, inspired by MicroStrategy’s strategy of leveraging Bitcoin for yield and corporate growth.&nbsp;
 <h2 id="robert-kiyosaki-predicts-bitcoin-correction-to-60k">Robert Kiyosaki Predicts Bitcoin Correction to 60K</h2>
 Robert Kiyosaki, the well known author of Rich Dad Poor Dad, shared a bold <a href="https://x.com/theRealKiyosaki/status/1863161721700982854" target="_self" rel="noopener noreferrer nofollow">prediction</a> regarding Bitcoin (BTC), and suggested that its price may ”crash” to as low as $60,000. Despite this big potential downturn, Kiyosaki is still optimistic and unfazed. He sees such a correction as a buying opportunity, and stated that he will not sell but instead acquire more Bitcoin during the dip.
 At press time, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_self" rel="noopener noreferrer nofollow">Bitcoin</a> is trading hands at $97,561, according to data from CoinMarketCap. The crypto recently reached an all-time high on Nov. 22 before experiencing a minor pullback to $90,742. This price movement reignited discussions about Bitcoin’s volatility and long-term potential.
 BTC’s price action over the past month (Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_self" rel="noopener noreferrer nofollow">CoinMarketCap</a>)
 While some, like Galaxy Digital CEO Mike Novogratz, believe Bitcoin is unlikely to fall below $80,000, Kiyosaki’s outlook focuses less on short-term price fluctuations and more on accumulation. He stated that at this stage, the number of Bitcoin held matters more than its immediate price.
 Kiyosaki also previously <a href="https://x.com/theRealKiyosaki/status/1859058685403881798" target="_self" rel="noopener noreferrer nofollow">expressed his support</a> for ultra-bullish predictions, like MicroStrategy CEO Michael Saylor’s projection of Bitcoin reaching $13 million. Additionally, he recently referenced an unidentified AI model predicting Bitcoin will hit $500,000 by 2025.&nbsp;
 <h2 id="150k-bitcoin-possible-by-copying-2023-performance">$150K Bitcoin Possible by Copying 2023 Performance</h2>
 Other Bitcoin predictions even suggest that the crypto could&nbsp;reach $250,000 in 2024 or hit $150,000 simply by replicating its 2023 price performance. Tom Lee, co-founder and head of research at Fundstrat Global Advisors, shared in an <a href="https://www.youtube.com/watch?v=RVqm779p5U8" target="_self" rel="noopener noreferrer nofollow">interview</a> with Wealthion that Bitcoin's price cycles, especially those linked to block subsidy halving events, support these ambitious targets. According to Lee, the ”sweet spot” of Bitcoin’s bull run has already started, with the supply cut effects expected to drive massive price growth over the next year.
 Lee also pointed to a potential game-changer under a new U.S. administration, and suggested that a Bitcoin reserve strategy could lend some much needed legitimacy to the cryptocurrency. By drawing parallels with MicroStrategy, Lee mentioned how adopting Bitcoin as a balance-sheet asset generated immense value for the company’s shareholders. Lee is not the only one who sees massive potential in&nbsp;Bitcoin as commentators like The Bitcoin Therapist echoed a similar sentiment on social media.
 Meanwhile, other analysts are equally bullish. Trader <a href="https://x.com/davthewave" target="_self" rel="noopener noreferrer nofollow">Dave The Wave</a> believed that Bitcoin could realistically reach $150,000 by mirroring its 186% gain between October of 2023 and March of 2024. He described this price surge as entirely feasible, especially given the current market dynamics and Bitcoin's historical performance.
 The combination of cyclical supply dynamics, institutional strategies, and market sentiment proves that there is a growing confidence in the cryptocurrency's potential for reaching six-figure valuations in the near future.
 <h2 id="bitcoin-in-its-parabolic-phase">Bitcoin in Its ‘Parabolic Phase’</h2>
 Bitcoin is also entering what analysts describe as the ”<a href="https://x.com/rektcapital/status/1862534614335570249" target="_self" rel="noopener noreferrer nofollow">parabolic phase</a>” of its current market cycle, with projections suggesting a potential local top of over $110,000 before the end of January. This optimistic forecast aligns with its correlation to the Global Macro Investor’s Total Liquidity Index, which aggregates the balance sheets of major central banks. According to <a href="https://x.com/RaoulGMI" target="_self" rel="noopener noreferrer nofollow">Raoul Pal</a>, CEO of Global Macro Investor, this price level is just a local peak for Bitcoin, with its right-hand side (RHS) potentially peaking in January 2025 before a correction below $70,000 by February.
 The expected dip is seen as temporary, driven by an ”interim peak in liquidity,” with liquidity projected to continue increasing into the third quarter of 2025. Historically, growing money supply was a major catalyst for Bitcoin's price. Bitget Wallet’s COO, <a href="https://cointelegraph.com/news/bitcoin-liquidity-index-110k-top-january-2025" target="_self" rel="noopener noreferrer nofollow">Alvin Kan</a>, pointed out that liquidity injections from the Federal Reserve typically create favorable market conditions for risk assets like Bitcoin as it spurs investor interest and inflows into the crypto market.
 Other analysts, including <a href="https://x.com/Jamie1Coutts" target="_self" rel="noopener noreferrer nofollow">Jamie Coutts</a> of Real Vision, suggested that Bitcoin’s price could reach over $132,000 during the year, fueled by the <a href="https://x.com/Jamie1Coutts/status/1861662465010082101" target="_self" rel="noopener noreferrer nofollow">increasing money supply</a>. Historical patterns also indicate that Bitcoin could absorb up to 10% of the new liquidity, which could potentially attract $2 trillion in investments as the global liquidity pool is predicted to expand by $20 trillion. Coutts did warn that Bitcoin cycles sometimes deviate from linear projections, leaving room for even higher price targets.
 Bitcoin’s rally has also been influenced by broader macroeconomic and political events. Donald Trump’s victory in the recent U.S. presidential election boosted risk appetite in financial markets, and created even more momentum for Bitcoin. Analysts from Bitfinex <a href="https://cointelegraph.com/news/bitcoin-liquidity-index-110k-top-january-2025" target="_self" rel="noopener noreferrer nofollow">predict</a> that the new administration's supportive regulatory stance could lead to new all-time highs for cryptocurrencies in 2025.&nbsp;
 Speculation about the establishment of a strategic Bitcoin reserve under the Trump administration fueled this optimism even more. Blockstream CEO <a href="https://x.com/adam3us" target="_self" rel="noopener noreferrer nofollow">Adam Back</a> suggested that such a move could drive Bitcoin’s price toward $1 million.
 <h2 id="on-chain-microstrategy">On-chain MicroStrategy?</h2>
 Solv Protocol is set to launch what it describes as an ”on-chain MicroStrategy,” to transform Bitcoin from a passive store of value into an active asset in decentralized finance (DeFi). Co-founder <a href="https://x.com/RyanChow_DeFi" target="_self" rel="noopener noreferrer nofollow">Ryan Chow</a> announced the initiative, and described it as a transparent and permissionless platform that is designed to strategically manage Bitcoin reserves. The goal is to preserve wealth while still generating yield and amplifying returns, though specifics on exactly how this will be achieved remain unclear.
 As a Bitcoin staking platform, Solv offers a variety of yield strategies across multiple blockchain networks, leveraging Bitcoin layer-2s like Babylon and CoreChain, and DeFi protocols like Jupiter and Ethena. Currently, the platform oversees more than $3 billion in total value locked (TVL), according to data from <a href="https://defillama.com/protocol/solv-protocol" target="_self" rel="noopener noreferrer nofollow">DefiLlama</a>.
 This move draws inspiration from MicroStrategy, the business intelligence firm that has become synonymous with large-scale Bitcoin investments. Since 2020, MicroStrategy&nbsp; pivoted toward Bitcoin accumulation under the leadership of Michael Saylor, and established itself as a de-facto Bitcoin hedge fund. The company’s shares soared by over 450% in 2024 alone thanks to its innovative approach to leveraging its balance sheet for Bitcoin acquisitions.
 MSTR Bitcoin holdings (Source: <a href="https://www.mstr-tracker.com/" target="_self" rel="noopener noreferrer nofollow">MSTR Tracker</a>)
 MicroStrategy’s strategy includes the concept of Bitcoin yield, which measures the ratio of BTC holdings to outstanding shares, effectively tying corporate performance to Bitcoin accumulation. The firm also plans to raise $42 billion through equity and debt as part of its ambitious “21/21 Plan,” aiming for a projected Bitcoin yield of 12.7% by 2025.&nbsp;
 Solv’s effort to replicate this model in DeFi could bridge traditional finance strategies and blockchain innovation. This could position Bitcoin as a much more dynamic and versatile asset in decentralized ecosystems.&nbsp;
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Robert Kiyosaki Sees Bitcoin Crash to $60K as a Chance to Buy More

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