[ad_1]
Bitcoin mania is return and with it, the return of the dizzying predictions of famous crypto fund managers to the pillars of Wall Street on the way forward.
The world’s largest digital currency is in the midst of an exuberant rally that this week saw it go above $ 18,800 for the first time in nearly three years. Crypto strategists and fans are now rushing to project its next never-before-seen heights. Outside of the eternal at According to “lunar” statements from Twitter experts, forecasts range from $ 25,000 to over $ 300,000 by the end of next year.
Here’s what helped Bitcoin’s run: a warmer embrace of such as Fidelity Investments and JPMorgan Chase & Co. is often cited as a catalyst, as is a decision by PayPal Holdings Inc. to allow its customers to access crypto-currencies. Then there is always FOMO, or fear of missing out, because prices are skyrocketing. For crypto evangelists, these developments are just the first steps on the road to ubiquity.
“You suddenly have this almost perfect backdrop that not only gives the asset class validity, but also really demonstrates its sustainability,” said Michael Sonnenshein, Managing Director of Grayscale Investments, which operates the largest listed company. in stock exchange. crypto trust. It’s “once again showing investors, no matter how many times he’s challenged, that he has a way to come out almost stronger or to demonstrate his ability to be really, really resilient.
Amid Bitcoin’s euphoric race this week, Fundstrat Global Advisors strategist David Grider raised his Price target for the end of 2021 at $ 25,000 from $ 16,500, or about 40% above Friday’s closing price.
Grider relies on an internal model that looks at valuations and takes into account the prices of cryptocurrencies. In 2017, when Bitcoin rose to nearly $ 20,000 – its record high – its setting showed the coin was in an “incredible bubble.” He says he answered the call well and is confident his model will work this time around as well.
“History doesn’t repeat itself, but it rhymes,” Grider said. the head of the company’s digital asset strategy. “The audience is bigger, the market is bigger, it’s a little more institutionalized – you have different areas of capital that come into play.”
To be sure, Grider’s predictions sound familiar to crypto veterans. Tom Lee, co-founder of Fundstrat, had started 2018 with a year-end price target of $ 25,000, before finally dropping deadlines for its predictions in December, when it was around $ 3,000 to $ 4,000.
Still, crypto fans cite plenty of reasons why it can continue its run this time around. Famous billionaire investor Mike Novogratz said he sees “tons of new buyers” in the middle of a “limited supply”.
Novogratz, who is the founder of Galaxy Digital, was not shy about his take on Bitcoin and said this week he sees it reaching $ 65,000. Her comments came via Twitter in response to a question from “Game of Thrones” star Maisie Williams, who asked her 2.7 million followers if she should invest in the piece. (She did.)
Bitcoin would need more than tripling to meet Novogratz’s goal. In November 2017, the former hedge fund manager had predict the coin will reach $ 40,000 by the end of the following year, only to see it finish below $ 4,000.
The most optimistic mainstream projections are those that see Bitcoin reaching $ 100,000 or more. Tom Fitzpatrick, strategist at Citigroup Inc., caused a stir this month when he said the crypto could potentially reach $ 318,000.
The higher forecast has warned observers that the volatility that has characterized Bitcoin since its inception more than a decade ago is likely to return.
Edward Moya, senior market analyst at Oanda, recalls witnessing a cryptocurrency conference in 2014. At the time, Bitcoin’s price was hovering around $ 600 after jumping the previous two months. And everyone, he said, was speculating how high that might reach. The event, and others like it, reminded him the early days of the Wild West of the foreign exchange markets.
“Cryptocurrencies have come a long way,” he said.
But Moya is skeptical that this race can continue – he points to the last time crypto fans overestimated a Bitcoin rally. “The extravagant calls today seem mostly based on the momentum mania,” he said. “I doubt institutional traders will allow Bitcoin to go in one direction.”
– With the help of Vildana Hajric
[ad_2]
Source link