Bitcoin Prize $ 100,000 for Hit in 2018, Predicts Saxo Bank Analyst
An analyst at Saxo Bank said he believes the price of Bitcoin could reach $ 100,000 in 2018 due to increased interest from institutional investors.
Institutional Investors Could Bid Bitcoin Price Up To $ 100,000
Kay Van-Petersen made waves in December 2016 when he predicted that the price of Bitcoin could reach up to $ 2,000 in 2017, which is more than 100 percent higher than it was at the time.
Bitcoin needed less than half of the year to reach this mark. After mining lasted $ 2,000 in May, Bitcoin's price continued to exceed the most optimistic forecast, and it ended the year close to $ 14,000.
Now, the Saxo analyst is raising the stakes. Van-Petersen told CNBC he believes Bitcoin's price could reach $ 50,000 to $ 100,000 by the end of 2018 - an increase of 300 percent to 700 percent from its Tuesday morning value.
"Off First, we could say that we had a good correction in Bitcoin, he had a 50 percent pull back at some point, which is healthy. But we have not yet seen the full effect of futures contracts, "he said.
The rally, he said, will be driven primarily by institutional investors, who have recently begun to enter what has been largely focused on the retail market.
A variety of hedge funds and venture capital companies began investing in Bitcoin last year, including the Peter Thiel Founders Fund.
US stock markets CBOE and CME also launched the first regulated Bitcoin futures available to Wall Street investors, and fund providers have sought (so far unsuccessfully) to obtain regulatory approval to use these contracts as a basis for ETFs that track the bitcoin price (ETF Bitcoin).
Despite these bullish developments, Bitcoin's heated rally has cooled in recent weeks. Since the beginning of January, the price of Bitcoin has declined by more than nine percent, and it currently sits around 40 percent below the record level it located on December 17
Van-Petersen does not care. He said that Bitcoin often consolidates to a lower level before falling to new heights.
"I would not be surprised if it's something we see," he said. "It's building a kind of foundation, and then re-rates a bit higher. "
Ethereum could outperform Bitcoin
Despite his optimistic view of bitcoin, Van-Petersen believes that ethereum will be the true headline of this year's cryptocurrency market.
Arguing that Ethereum has a "more unified leadership than Bitcoin," he said he believes Ethereum will evolve faster than Bitcoin.
This, he said, will further increase the number of transactions made on the network, ultimately allowing Ethereum to outperform Bitcoin's twelve-year performance.
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