- RBA Governor Michele Bullock and ASIC Chair Joe Longo criticise Bitcoin, highlighting its unsuitability as currency in Australia.
- Bullock dismisses Bitcoin as not a currency or money, but merely an asset class, during the ASIC annual forum.
- Following Trump’s re-election, Bitcoin’s initial surge cools, despite global optimism about its potential.
- Australian officials compare the crypto rally to the greater fool theory, signalling scepticism about sustainable value.
Surely, with the euphoria that the post-US-election rally brought, everyone is now behind crypto, right?
Well, the Governor of the Reserve Bank of Australia (RBA), Michele Bullock, has just thrown a spanner in the works for anyone thinking Australia could become as crypto-friendly as the United States is poised to.
Not a Currency, Not Money, Just Some Sort of Asset
In true Gary Gensler style, Bullock told the Australian Securities and Investments Commission (ASIC) annual forum last Thursday what she thinks of Bitcoin, stating it’s not “alternative currency”.
Related: SEC in Hot Water: 18 States Sue as Gensler’s Crypto Freeze Backfires
It’s not a currency, it’s not money, it’s being used as some sort of asset class.
Michele Bullock, RBA GovernorThe RBA Governor was adamant that Bitcoin doesn’t have a role in the local economy, acknowledging that she doesn’t really “understand it”.
But, you know, I don’t really see a role for it in, certainly in the Australian economy or payments system.
Michele Bullock, RBA GovernorASIC chair Joe Longo struck a similar chord, saying the recent crypto rally is nothing but another example of “the bigger fool theory”.
The greater fool theory suggests that you can profit from overvalued assets by selling them to someone else (the aforementioned “fool”) who is willing to pay a higher price.
After a strong couple of days following Trump’s re-election, during which it hit new daily highs, Bitcoin briefly dipped below US$90k (AU$139.2k) over the weekend but has since recovered, trading at US$90,388 (AU$139,573) at the time of writing.
Related: As Bitcoin Reaches $93K High, Analysts Say Get Used to ‘Repeated All-Time Highs’
Meanwhile, the Fear and Greed Index dropped from 90 to 83, still showing Extreme Greed.
Stage Set for BTC To “Continue Breaking All-Time Highs and Reaching New Peaks”
Bitcoin soared to new all-time highs amid a proposed bill to use Bitcoin and its ETFs as an inflation hedge in Pennsylvania. Meanwhile, 18 US states have sued the US Securities and Exchange Commission (SEC) for overregulating crypto assets, amid rumours of SEC Chair Gary Gensler’s imminent resignation.
And crypto analysts at Swissblock continue to be optimistic and supportive. In a recent note, titled ‘Buy, Hold, but don’t FOMO’, they stressed that despite the inherent fluctuations of Bitcoin, the underlying momentum and fundamentals are strong, suggesting a positive outlook for future growth and record-breaking highs.
Everything seems set for Bitcoin to continue breaking all-time highs and reaching new peaks. Of course, that’s not a linear path.
SwissblockThey added that getting to the psychologically important US$100k barrier will likely take a few tries.
It’s also likely that, despite the strong momentum, breaking $100K will take more than one attempt and could shake out over-leveraged positions along the way.
SwissblockRelated: XRP Rallies as Societe Generale Pumps Up Ledger with MiCA-Compliant Stablecoin
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