History doesn’t repeat, but it rhymes, says David Grider, strategist at Fundstrat Global Advisors.
- The world’s largest digital currency is in the midst of an enthusiastic rise this week, with over $ 18,800 in almost three years.
- Crypto fans cite many reasons why it might keep working this time.
- Famous billionaire investor Mike Novogratz says he sees “tons of new buyers” amid “scarce supply”.
The bitcoin craze is back, and with it, it’s the return of very high predictions from famous crypto fund managers to Wall Street loyalists of where to go next.
The world’s largest digital currency is in the midst of an enthusiastic surge this week with over $ 18,800 for the first time in almost three years. Strategists and crypto fans are now rushing to estimate their never-before-seen heights. Apart from the infinite to “month” comments by Twitter commentators, estimates range from $ 25,000 to $ 300,000 by the end of next year.
Here’s what helps Bitcoin work: Fidelity Investments and JPMorgan Chase & Co. A warmer hug like PayPal Holdings Inc.’s decision to allow their customers access to cryptocurrencies is often cited as a catalyst. Then there is always a fear of FOMO or missing out as prices go up. For crypto missionaries, these developments are the first bends on the road to ubiquity.
“You suddenly have an almost perfect backdrop that not only lends validity to the asset class, but also demonstrates its enduring strength,” said Michael Sonnenshein, managing director of Grayscale Investments, which runs the largest exchange-traded crypto trust. “Once again demonstrating that regardless of how challenged investors are, it is almost the way to showcase the ability to come out stronger or really, truly resilient”.
In the midst of Bitcoin’s enthusiastic run this week, Fundstrat Global Advisors strategist David Grider raised his price target for the end of 2021 from $ 16,500 to $ 25,000 or nearly 40% higher than Friday’s closing price.
Grider relies on an internal model that looks at valuations and takes into account the prices of cryptocurrencies. In 2017, when Bitcoin approached $ 20,000 – reaching a record high – its frame showed that the coin was in an “incredible bubble”. She says she did this search right and is confident her model will work this time too.
“History doesn’t repeat, but it rhymes,” said Grider, the company’s head of digital asset strategy. “The audience is bigger, the market is bigger, a little more institutionalized – different areas of capital are coming.”
Sure, Grider’s prediction sounds familiar to crypto veterans. Fundstrat co-founder Tom Lee started 2018 with an end-of-year price target of $ 25,000 and eventually abandoned the time frames for his estimates in December, when he was in the range of $ 3,000 to $ 4,000.
Still, crypto fans cite many reasons why he might continue this time around. Famous billionaire investor Mike Novogratz says he sees “tons of new buyers” amid “scarce supply”.
Novogratz, founder of Galaxy Digital, did not shy away from his views on Bitcoin and said he saw it reach $ 65,000 related to Bitcoin this week. His comments came via Twitter in response to a question from “Game of Thrones” star Maisie. Williams asked his 2.7 million followers if he would invest in the coin. (He did.)
Novogratz needs more than three times Bitcoin to reach his goal. In November 2017, the former hedge fund manager predicted that the coin would reach $ 40,000 by the end of next year, but that it would expire at under $ 4,000.
The most bullish mainstream predictions are those who see Bitcoin reaching $ 100,000 or above. Tom Fitzpatrick, a strategist at Citigroup Inc., made a splash this month when he said the coin could potentially reach as high as $ 318,000.