Bitcoin will grow by 230% by the end of the year

Bitcoin has exceeded $ 8,900 over the weekend, investors are thrilled. The words “Cryptocurrency” and “Blockchain” are being re-spoken by the general public, with some of the world’s largest media starting to tell about the ups and downs of the scene.

To help meet the crypto market, Bloomberg’s Markets: Asia recently talked to Jehan Chu, a co-founder of Kenetic Capital, who explained why Bitcoin’s latest move up the ladder is just the tip of the iceberg.

Chu notes that Bitcoin’s story is finally beginning to “become a reality” after ten years of existence. Or, as he puts it alternatively: People now come to the realization that crypto currencies have come to stay. At the same time, he notes that he expects Bitcoin to trade $ 30,000 by the end of 2019 – up 230% from current prices.

The forecast is supported by the fact that Facebook, JP Morgan, Fidelity Investments and other major names in Silicon Valley and Wall Street are also active in the crypto industry. These developments will drive the adaptation in his eyes tremendously.

He is not the first to think. In a conversation with Bloomberg on Tuesday, BitPay’s Sonny Singh stated that although the boom in 2017 and the massive downturn in 2018 was driven by hysteria and “momentum”, Bitcoin’s jump from $ 3,200 to $ 8,800 was fueled by infrastructure developments (eg AT & T, which accept Bitcoin and E * Trade, who want to introduce the crypto currency trading). Singh added that investors in this area should be bullish – because who knows what big name from technology or finance will come up next.

The co-founder of Kenetic points out that Uber and other major IPOs in Silicon Valley have fallen short of expectations, driving investors who are more risk-friendly into assets such as Bitcoin, historically considered uncorrelated and asymmetric.

Finally, Chu draws attention to the upcoming reduction of the block reward (Halving) for Bitcoin, which should be activated in about 360 days. Analyst PlanB notes that the “fair” value of Bitcoin will be at least $ 55,000 after halving its stock to flow model.

As can be seen in the chart of Tuur Demeester by Adamant Capital, Bitcoin only reaches new highs after halving the block reward. If Chu’s prediction were to bear fruit, BTC would have broken an important historical trend. 
In addition, JP Morgan has recently suggested that Bitcoin is already trading well above its “fair intrinsic value”. At $ 30,000, BTC would have gone far beyond what the bank sees as fair.

Analyst Dave The Wave points out that Bitcoin is still in a parable, which could bring it back to $ 18,000 by mid-June. He adds, “How high you can do it, nobody knows.” And with that, Dave may be right.

As can be seen in the chart of Tuur Demeester by Adamant Capital, Bitcoin only reaches new highs after halving the block reward. If Chu’s prediction were to bear fruit, BTC would have broken an important historical trend. 
In addition, JP Morgan has recently suggested that Bitcoin is already trading well above its “fair intrinsic value”. At $ 30,000, BTC would have gone far beyond what the bank sees as fair.

Analyst Dave The Wave points out that Bitcoin is still in a parable, which could bring it back to $ 18,000 by mid-June. He adds, “How high you can do it, nobody knows.” And with that, Dave may be right.



Categories: Crypto Currency

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