Bitcoin: Why this investment expert believes that BTC can reach peaks of $ 250k
Like the price of Bitcoin [BTC] starting to reach its lowest levels in January 2021, the majority of the market is motivated by fear. Players in the market have now started massive distribution of the coin to save their investments. However, many who believe in the inherent value of Bitcoin, still have the token in anticipation of a bullish run.
One of those who is positive about the ultimate success of the largest cryptocurrency is Jan Van Eck, CEO of a global investment manager, VanEck. In a recent interview with Forbes, at the Consensus Cryptocurrency Conference in Austin, Texas, the CEO shared his general views on the market. Speaking about the hope for the future of bitcoin, he further stated that he believes bitcoin can reach $ 250,000. However, he added a warning that this could take a few years.
Why Bitcoin, you ask?
By comparing Bitcoin to gold, Van Eck stated that:
“Buyers see it (Bitcoin) as a supplement to gold. It is the fast model … And it is very difficult, practically impossible, to vary it. Bitcoin will go to half the market value of gold, or $ 250,000 per Bitcoin. “But it can take many years. It’s hard to put a time frame on it.”
Speaking about why he has this view, Van Eck stated that there has been a growth in institutional adoption of the coin. Furthermore, with more institutional adoption in the coming years, the value of Bitcoin should usually grow over time.
“And its (Bitcoin) institutional adoption is increasing annually. It is not just institutional buyers, but also governments around the world who must see it as a useful resource. My basic assumption is that it will take a place in portfolios just like silver’s historical Gold was the first asset, but usually people bought silver or other valuable metals. People looking for a dealer of value will look at gold, but in addition to Bitcoin. We are in the middle stages of that adoption cycle, and it may be further upside. ”
Van Eck advised investors on how much Bitcoin should make up their investment portfolios, stating that this should be “somewhere between ½% to 3%” of their investment portfolios.
In addition, he mentioned the problems his company is facing in obtaining approval from the Securities and Exchange Commission (SEC) for a spot Bitcoin ETF that was applied for over five years ago.
“The SEC does not want to approve a Bitcoin ETF until it has jurisdiction over the underlying cryptocurrency exchanges, which must take place through laws. And in an election year, it is unlikely that laws will occur. I am thrilled that there are cross-party talks on how these laws should work, he said.
Mr. Van Eck’s prophecy was put to the test
Despite the serious ongoing market capitulation, data from Glassnode revealed a general bullish sentiment against the coin. In a steady upward trend, the number of addresses with more than one Bitcoin registered an ATH to stand at 851,921 at the time of the press. With this continued bullish stance, the largest cryptocurrency may be on its way to marking a spot of $ 250,000 as predicted.
Source: Glassnode
