in 2018, the price of bitcoin will rise to $ 100,000, analyst Saxo Bank predicts
Analyst Saxo Bank said that, in his opinion, the price of bitcoin could reach $ 100,000 in 2018 due to increased interest from institutional investors.
Institutional investors can raise the price of bitcoins to $ 100,000
Kay Van-Petersen made a fuss in December 2016, when he predicted that the price of bitcoin could reach $ 2,000 in 2017, which represented more than 100% growth from his level at that time.
To achieve this mark, bitcoin needed less than six months. Having risen above $ 2,000 in May, the price of bitcoin continued to exceed even the most bullish forecasts, and eventually, the year ended at $ 14,000.
Now analyst Saxo raises the stake. Van Petersen told CNBC that, in his opinion, the cost of bitcoin by the end of 2018 could reach from $ 50,000 to $ 100,000 – an increase of 300-700 percent of its value on Tuesday morning.
“First of all, it should be said that bitcoin experienced the correct correction, at some point, it retreated by 50 percent, which indicates a healthy market. But we still do not see the full effect of futures contracts, “he said.
This price rally, he said, will primarily be fueled by institutional investors, who only recently began to enter into what was generally a retail-oriented market.
Last year, various hedge funds and venture capital firms began to invest in bitcoin, primarily the Founders Fund of Peter Thiel.
Also, the US stock exchanges CBOE and CME launched the first regulated bitcoin futures contracts available for investors on Wall Street, and the funds want to get approval (as yet unsuccessfully) of regulators to use these contracts as a basis for exchange-traded funds tracking the cost of bitcoin ETF for bitcoin).
Despite the positive developments, the heated price rally of bitcoin has cooled in recent weeks. Since early January, the price of BTC has fallen by more than nine percent, and it is now about 40 percent below the record high set December 17.
Van-Petersen does not bother. He said that bitcoin often consolidates at a lower level before reaching new highs.
“I would not be surprised if that’s what we’ll see,” he said. “It kind of creates the basics, and then rises a little higher.”
Ethereum can beat Bitcoin
Despite a bullish view of bitcoin, Van Petersen believes that the real star of the price rally of the crypto-currency market will be Ethereum.
Claiming that Ethereum has “more unified leadership than bitcoin,” he said that, in his opinion, Ethereum will scale faster than bitcoin.
This, he said, will further increase the number of transactions across the network, which will eventually allow Ethereum to beat Bitcoin figures for the year.