No matter the current state of bitcoin price, a new claim places the bitcoin price in 2018 near $100,000 levels.
The prediction has been made by an analyst Kay Van-Petersen at Saxo Bank. According to Van-Petersen bitcoin price will reach a staggering $100,000 before end of this year with institutional investors players having a major role to play in the surge.
Back in December 2016 it was Van-Petersen who had predicted that the bitcoin price could reach as high as $2,000 in 2017. While the prediction was for the entire 2017, it didn’t take more than 30 minutes for bitcoin to reach those level in May 2017. The year 2017 turned out to be the best for bitcoin as it surged to nearly $20,000 before settling at $14,000.
In an interview Van-Petersen told CNBC that there is a strong possibility that bitcoin price will reach $50,000 to $100,000 before the end of 2018. This rally, he said, will be fueled primarily by institutional investors, who have only recently begun to enter what has largely been a retail-driven market.
A variety of hedge funds and venture capital firms began investing in bitcoin last year, most notably Peter Thiel’s Founders Fund.
US exchanges CBOE and CME also launched the first regulated bitcoin futures contracts available to Wall Street investors, and fund providers have sought (thus far unsuccessfully) to gain regulatory approval to use these contracts as the basis for exchange-traded funds that track the price of bitcoin (Bitcoin ETFs).
Despite these bullish developments, the bitcoin’s heated rally has cooled in recent weeks. Since the beginning of January, the bitcoin price has declined by more than nine percent, and it currently sits approximately 40 percent below the all-time high it set on Dec. 17.
Van-Petersen is not concerned. He said that bitcoin often consolidates at a lower level before breaking out to new highs.