The Bitcoin craze is back And with it, the return of big predictions from crypto fund managers and Wall Street stalwarts about where it can go next.
The largest digital currency in the world is in the midst of a lush rally that this week saw it cross above $ 18,800 for the first time in almost three years.
Strategists and cryptocurrency fans are now rushing to project their next never-before-seen forecasts. Outside of the timeless pronouncements about what will rise to ‘the moon’ from the experts on Twitter, the forecasts vary and range from 25 thousand to more than 300 thousand dollars by the end of 2021.
Here’s what helped Bitcoin’s run: a warmer ‘hug’ from companies like Fidelity Investments; JPMorgan Chase is often cited as a catalyst, as is PayPal’s decision to allow their customers to access cryptocurrencies. Then there is always the Fear of Missing Out, (or the fear of missing something) as prices go up. For ‘crypto evangelists’, these developments are only the first junctures on the road to ubiquity.
« All of a sudden you have this near-perfect backdrop that not only lends validity to the asset class, but also really demonstrates its staying power, » said Michael Sonnenshein, managing director of Grayscale Investments, which operates the largest cryptocurrency trust. traded on the stock exchange.
It is « once again showing investors, no matter how many times they are challenged, that bitcoin has an almost stronger way of emerging or demonstrate your ability to be really, really tough, « he added.
Amid Bitcoin’s euphoric run this week, Fundstrat Global Advisors strategist David Grider raised his price target for the end of 2021 to $ 25,000 from $ 16,500, or roughly another 40 percent higher than the price. closing on Friday.
It may interest you: Nothing stops bitcoin: it reaches 18 thousand dollars
Grider is based on an internal model that analyzes valuations and takes into account the prices of cryptocurrencies. In 2017, when Bitcoin went up at about $ 20,000, its all-time high, its frame showed that the coin was in an « incredible bubble ». He says he got that call right and is confident his model will work this time too.
« History does not repeat itself, but it rhymes »added Grider, the company’s director of digital asset strategy. « The audience is bigger, the market is bigger, it’s a bit more institutionalized, there are different fields of capital coming in. »
To be sure, Grider’s forecast sounds familiar to crypto veterans. Fundstrat co-founder Tom Lee had started 2018 with a $ 25,000 year-end price target before finally dropping out of the time frames for his predictions in December, when it was in the $ 3,000 to $ 4,000 range.
Still, crypto fans are citing many reasons why it may continue to work this time. Famous billionaire investor Mike Novogratz said he sees « tons of new buyers » amid « low supply. »
Novogratz, who is the founder of Galaxy Digital, has not been shy about his views on Bitcoin and this week stated that he sees it reaching $ 65,000. His comments came via Twitter in response to a question posed by Game of Thrones star Maisie Williams, who asked her 2.7 million followers if she should invest in the coin. (She did it).
Bitcoin would need more than three times as much to reach Novogratz’s goal. In November 2017, the former hedge fund manager had predicted the coin would hit $ 40,000 by the end of the following year, only to see it finish below $ 4,000.
The most optimistic conventional projections are those that see Bitcoin reaching $ 100,000 or more. Citigroup strategist Tom Fitzpatrick made a splash this month when he said the cryptocurrency could reach $ 318,000.
Rising forecasts have observers warning that volatility is likely to return, which has been a hallmark of Bitcoin since its debut more than a decade ago.
Edward Moya, a senior market analyst at Oanda, recalls attending a cryptocurrency conference in 2014. At the time, Bitcoin’s price was hovering around $ 600 after having jumped the previous two months. And everyone, he says, was speculating about how high it could go. The event, and others like it, reminded him of the early days of the ‘Wild West in forex markets’.
« Cryptocurrencies have come a long way, » he emphasized.
But Moya is skeptical that this race can continue– Marks the last time crypto fans overestimated a Bitcoin rally.
« Today’s outlandish calls seem to be based mostly on momentum mania. I doubt institutional traders will allow Bitcoin to only go one way, » he opined.
We recommend you:
Ricardo Salinas reveals that he has a 10% liquid portfolio in bitcoin