Bitcoin could become a safe haven for investment professionals if the traditional monetary system collapses, says an analyst at prominent social trading platform eToro.
Speaking to Russia Today, Mikhail Mashchenko, said:
The demand for bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance.
His comments come at a time when the digital currency market is experiencing record highs. Earlier today, it was reported that bitcoin was within touching distance of $10,000 when it reached $9,771 for the first time. As a result of rising cryptocurrency prices, the combined market value has reached over $300 billion, according to CoinMarketCap, making it more valuable than Visa. Not only that, but positive events are taking place in the sector, helping to bump the cryptocurrency’s price up.
Next month, the Chicago Mercantile Exchange Group (CME) is planning to launch a bitcoin futures contracts, pending regulatory approval. Wall Street bank JPMorgan Chase is also considering helping its clients to bet on the price of the digital currency with its own bitcoin futures. This is despite the fact that Jamie Dimon, CEO, has criticised the cryptocurrency in the past.
Yet, regardless of this, some hedge fund platforms are avoiding the cryptocurrency as they fear it may be a fad.
Mashchenko believes, though, that we may see the digital currency reach $10,000 ‘in a month or so,’ adding:
However, such a surge will be based on emotions, not on fundamental factors. So, further growth of the cryptocurrency will require something more than euphoria.
Billionaire trader and hedge fund manager Mike Novogratz is of the opinion that $10,000 will be achieved for the cryptocurrency before the end of the year. He believes this is because of a lack of trust with central banks, consensus, and scarcity. In a previous interview in October, the former Fortress manager stated that the Wall Street ‘herd‘ will carry the bitcoin price to $10,000 within six to 10 months.
With the digital currency becoming the world’s 30th largest currency, many are closely watching there it will head to next, whether that’s up or down in price. Ronnie Moas, founder of Standpoint Research, thinks that it has the potential to reach $14,000 in 2018 after revising his price target from $11,000.
Since the beginning of 2017, bitcoin’s price has surged 870 percent in value. At the start of January, it was trading at $1,000 and at the time of publishing it is valued at $9,702, figures from CoinMarketCap indicate.
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Last modified: May 20, 2020 9:22 PM UTC