Bang! Welcome back on Crypto Speculation! In this video thanks to the advice of a follower, Matteo, we will analyze a coin that has attracted the attention of many investors in recent days, thanks to the release of a noteworthy news. Stay with me until the end of the video because it is at the end that I will reveal my prediction on the price of this token, both at the height of this Bull Run and in the next Bear Market. For those unfamiliar with this project, VeChain is currently a leader on Blockchain for what concerns the solution of all the problems related to counterfeiting and alteration of products.
It currently has a total market cap of approximately 5 billion and a total outstanding supply of 64 billion. Both of the data are very important for us investors when we consider buying a coin, in fact, the price of the token is the result of the total market cap divided by the circulating supply. The first myth I want to dispel is that of VeChain at € 1.00 To reach € 1.00 in value, VeChain must also reach 64 billion total market cap, that would mean reaching a position below ETH and surpass ADA and BNB by total capitalization.
These days many investors are buying this token after the news of the partnership with the automotive giant BMW. These two big companies will collaborate to develop the BMW-owned application on the VeChain Blockchain. The application will be used to counteract the counterfeiting that this trademark suffers but it will be the user to decide whether to apply it or not. In my opinion, this is explosive news but not only for this token, for the whole cryptocurrency sector, in fact, it will be much more attractive for many more companies. Now let's analyze everything from a speculative point of view.
BMW has a total capitalization of 54 billion, VeChain has just reached 5 billion, which is exactly 10% of the partner's capitalization, in my opinion, already a very good result. Rumors of this partnership have been circulating for a long time. This means that many experienced investors have been accumulating this asset for just as long. So let us carefully consider this… even if the BMW company were to buy VeChain to include it in its portfolio, it would do so off-chain, which is directly from your partner without altering the price of the token. However this, in my opinion, would not push investors into the token rather into BMW shares. In fact, in my opinion, many traditional investors would buy BMW shares rather than venture into the world of crypto, because a minimal percentage would also expose them to the VeChain token.
Let's also reflect on this other thing, BMW is creating its own application on Blockchain which means that probably it will not directly affect the price of the token, but, on the use of the Blockchain itself… So the highest yield is for all the holders of the coin that mine VeThor. Taking these factors into account, in my opinion, the price movement that we can expect from now on is mainly due to three other factors. The first is the inertia given by Bitcoin's Bull Run, second the retails that speculate on the news and third, the whales which in turn will speculate on the retails. But now let's get to the point, what is the price I think this coin could reach during this Bull Run and in the next Bear Market…
In the first place it is always all dictated by the King Bitcoin, its value and the total market capitalization. Given that I believe VeChain to be a Top 15 – Top 10 Coin Market Cap project, in the current state of the market, it could reach a total capitalization between 10 and 15 billion. By current state of the market I mean stable or growing Bitcoin. A capitalization of this type could bring this token to a maximum value of more or less $0.23 Now I'll use full numbers because it is a very important thing in crypto they are very respected numbers and I say $0.25 In my opinion it is the utopian maximum price we could see at the peak of this Bull Run while $0.15 is my realistic prediction without a Super Cycle Bitcoin.
And now the bad part, the Bear Market. Yes guys, that also exists… we have to put this in our minds. It's awful but that also exists. Hopefully and always if we don't enter a Bitcoin Super Cycle, it's easy to get back to the same prices we had on the same day I'm recording this video. Well yes, I say this bad thing because historically data tells us that altcoins, on average, lose 90% of their value during the Bear Market. History tells us that, data tells us that, not me. It certainly doesn't happen to all good projects but this is what we need to be prepared for. Now I am not a financial advisor and I can’t give you specific advice on what to do, you must get informed and make your decisions accordingly. What I do can tell you is what I would do if I invested in VeChain. I would divide my investment into 5 equal parts, one part is what I would hold for life, while the other 4 remaining parts I would always keep available for sale that I'd probably carry out at two different times, one during the Bull Run ascent and one during the Bear Market descent.
Example: having identified my two price targets during the Bull Run, $0.15 and $ 0.25, I would sell the first part of the four available at $0.15 and the second part at $ 0.25. If the price continues to rise, good, I still have three parts of my investment in staking plus I have a little nest egg from the first two sales that I can use to diversify my portfolio. Viceversa, if after reaching my target of $0.25, VeChain starts to drop in value, I would set a 20% target so if the price falls by 20% I sell the third part of my investment. I would sell the fourth and last part only for a further drop of 20% and then I'd stop. And now I'd start looking for new investment opportunities while I always have a small nest egg of VeChain coming from my previous investment.
Another thing I recommend is to start getting informed about which one of other car companies will do the same thing first and on which Blockchain. I'll give you a hint…Mercedes immediately relaunched by saying that they too are looking for solutions on Blockchain; I would also keep an eye on BMW's movements and shares because, after this step, they are more likely to expose themselves to BTC and ETH. In this case, in my opinion, the shares would go through the roof…This, investors and friends, is the only way we have to not be someone else's profit.
Always remember to secure your profits because no pump lasts forever and we will never be able to buy at the minimum possible or sell at the maximum possible, we can only either sell in profit or loss. So, always remember to sell when you are in profit.
Now I'm sorry I'm not a 'boomer' but I opened this channel to give my contribution with my thoughts. I don't go through the analysis on the chart because the technical analysis after exceeding the all-time high is usually a waste of time… the only thing that would make any sense to do would be to apply Fibonacci retracements to the chart but I trust that it is something that you investors already know how to do and I don't want to waste your time Now if you liked this video, you want more analytic data of this kind or you just want to tell me your opinion, all you have to do is write in the comments, leave a support like, subscribe to the channel and activate the notification bell to be notified of the next video .