The Bitcoin price is likely to hit $50 000 (R769 462) before the end of this month amid rising geopolitical tensions and growing institutional investments, predicts the CEO of the deVere Group.
The bullish prediction from Nigel Green comes as the world’s biggest cryptocurrency by market capitalisation jumped in price by more than 15% in a day.
He says In the past 24 hours, Bitcoin surged by more than $6,000 at one point to above $44,000 - its sharpest daily increase since February 2021.
“As it currently stands, I can see no reason why this price momentum should falter. I think we can expect to see Bitcoin hit $50,000 by the end of this month.”
Green goes on to add that “It’s still too early to say whether it will then go on to reach the all-time highs of $68,000 from November 2021. However, it’s not that big a leap from 50k to 68k and the world and the crypto market are moving at an accelerated rate in recent times. It’s certainly not out of the realms of possibility.”
The CEO believes geopolitical tensions and institutional investment are key drivers for sustaining the price push.
The Ukraine-Russia situation has caused significant financial upheaval and individuals, businesses and indeed government agencies – not just in the region but globally - are looking for alternatives to traditional systems.
“As banks close, ATMs run out of money, threats of personal savings being taken to pay for war, and the major international payments system SWIFT is weaponised, amongst other factors, the case for a viable, decentralised, borderless, tamper-proof, unconfiscatable monetary system has been laid bare”, Green argues.
“And as alternatives, such as crypto, prove to be credible and workable, the dollar’s Reserve Status could, ultimately, be in jeopardy. Savvy investors know this and will be further increasing their exposure to cryptocurrencies before prices rise further.”
“The appeal of global, digital currencies in our increasingly tech-driven world is, of course, not going unnoticed by institutional investors who include credit unions, banks, large funds such as a mutual or hedge fund, venture capital funds, insurance companies, and pension funds”, he notes.
“In fact, some reports say that institutions – who bring with them enormous capital, expertise and reputational influence - are now the dominant traders of cryptocurrencies.”
“As more and more institutional investors take control of the sector, credibility increases, trading volumes go up and volatility goes down – this is all good news for everyday investors”, according to Green.
“Developments in recent days have put a spotlight on Bitcoin’s key traits, which include being borderless, permissionless, censorship-resistant and unconfiscatable. These inherent characteristics have enormous – and growing – value.”
“This is why Bitcoin is now the 14th most valuable currency in the world. I expect it to jump further still up the rankings in coming months.”
BUSINESS REPORT