Bitcoin recently crossed the $3,000 mark on Chinese bitcoin exchanges, marking a new high-water mark for the bitcoin price. That’s not too shabby for a currency that has died 134 times, according to 99Bitcoins’ Bitcoin Obituaries tracker.
Although naysayers such as Mark Cuban claim bitcoin is due for a correction, there are good reasons to think the bitcoin price is not in a bubble. Indeed, Keiser Report host and long-time crypto-advocate Max Keiser stated on Twitter that he believes a $5,000 bitcoin price is within sight.
Keiser’s comment was prompted by a tweet from Roy Sebag, CEO of Goldmoney, who said he attended a meeting where a portfolio manager from a well-known hedge fund stated that his or her hedge fund was “dabbling in cryptos” and that going long “has helped our performance.”
Keiser believes that portfolio manager’s comment is indicative of growing wave of institutional investment into bitcoin. In his words:
Hedge funds are herd animals. If one starts pouring cash into Bitcoin, others will follow; $5,000 within sight.
As bitcoin becomes mainstream, both fund managers and the general public will cease to view bitcoin as a taboo investment and instead treat it as a viable investment vehicle, or at least a way to diversify their assets.
This certainly does seem to be the case. Global Advisors, a U.K.-based hedge fund recently released a bitcoin assessment that theorized the bitcoin price could double if bitcoin successfully implements a scaling solution. The Financial Times also reported that four large Japanese and American hedge funds have begun buying Mt. Gox account holder claims on the gamble that a bitcoin price increase will net them a huge windfall.
The bitcoin price still has a long way to go to reach $5,000, but if current trends continue cautious investors will soon be left regretting that they did not buy bitcoin when it was valued at $3,000. On his part, Keiser—who boasts that he has been recommending bitcoin since its value was $3—claims on his Twitter profile that his price target is $100,000.
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Last modified: May 21, 2020 9:45 AM UTC