Phillip Nunn, chief executive officer of Manchester-based investment firm Blackmore Group, is standing by his bullish prediction that the bitcoin price will reach $60,000 in 2018, according to BusinessCloud.
Nunn, who also advises initial coin offering (ICO) projects, told the news outlet he believes the flagship cryptocurrency see both $6,000 and $60,000 this year. Speaking to it at KPMG’s Tech Manchester, he noted that we’re close to the former. According to CCN’s price index, bitcoin is currently trading at $6,700.
Join CCN for $9.99 per month and get an ad-free version of CCN including discounts for future events and services. Support our journalists today. Click here to sign up.
“The prediction was based on, first of all, market volatility which we’re experiencing at the moment; I think that’s really apparent. I absolutely stand by my prediction.”
The CEO noted, however, that the money that currently exists in the crypto space came from the public and not institutional investors, which according to him means “it’s all about market sentiment.” This implies that a flood of bad news can hurt the market, and that the industry is so small “that there’s market manipulation.”
As reported by CCN, the US Department of Justice (DOJ) has launched a criminal probe into market manipulation last month, a move that billionaire investor and former hedge fund manager Mike Novogratz called a “good thing.”
Nunn reportedly speaks to financial institutions such as major banks and hedge funds on a regular basis, and revealed they “all want a piece” of the crypto space but can’t find an entry point as currently available vehicles aren’t suitable.
“There’s no entry point at the moment,” he said. “If you’re a pension fund with £5 billion in your pot and you want to take a 5 percent position in crypto you’re going to really piss your investors off because of the volatility in the market.”
The entrepreneur was then confronted with a report that claims the price of bitcoin and other cryptocurrencies will endure a 90 percent correction that’s set to cause a “mass market wipeout” within 12 months, published by investment bank GP Bullhound.
The report explained that while the correction will decimate various cryptocurrencies and related companies, the few survivors are in for an unprecedented rally. While Nunn sees “a little bit of sensationalism going on” with the report, he does agree various projects are going to disappear.
Per his words, cryptocurrencies like bitcoin, ethereum, and litecoin are “the fabric of the industry,” while the remaining 1,600 tokens are “an alternative to venture capital money,” implying most will end up failing while those who succeed may be projects that grow like current tech titans like Google and Facebook did.
“The reality is nobody knows how many will fail. This is different, because you’ve got guys who are raising $50 million where they’d usually raise $2 million from VCs so maybe more start-ups will succeed because they’ve got a war chest and a lot more running room.”
Besides being bullish on bitcoin, Nunn is also a proponent of blockchain technology in general. As BusinessCloud noted, he believes it will disrupt every existing industry and “the whole world,” as we’re moving “from an internet of information to an internet of value.”
Featured Image from Shutterstock