On a day when the price of bitcoin was down as much as 25% and is currently trading at about $11,000, it might be hard to imagine the price rising to $100,000 by the end of the year.
However, Kay Van-Petersen, an analyst at Denmark’s Saxo Bank who correctly predicted bitcoin’s price rise last year, said today that he believes it will trade between $50,000 and $100,000 by the end of this year.
In an interview on CNBC (a network that seems obsessed with cryptocurrency lately, though their coverage is lacking at times), Van-Petersen said: “First off, you could argue we have had a proper correction in bitcoin, it has had a 50 percent pull back at one point, which is healthy,” referring to today’s price drop. He continued. “But we have still not seen the full effect of the futures contracts.”
Late last year, both the CME and Cboe launched bitcoin futures contracts, the first of which expire later this month. Arguably, these contracts have been more attractive to institutional investors than holding actual bitcoin but they have gotten off to a slow start.
However, Van-Petersen sees these futures contracts as a key development that points toward more institutional investors entering the market, which would be necessary for the price of bitcoin to reach $100,000 by the end of this year. Notably, he originally stated it would take ten years for that to happen!
You can watch the full interview here: https://www.cnbc.com/2017/05/31/bitcoin-price-forecast-hit-100000-in-10-years.html.
What do you think? Tell me in the comments below. I’m a bit skeptical but I certainly did spend today buying the dip!