Like the price of bitcoin [BTC] is starting to touch its January 2021 lows, most of the market is fear driven. Players in the market have now started massive distribution of the coin to save their investments. However, many who believe in Bitcoin’s intrinsic value still hold the token in anticipation of an uptrend.
One such optimistic view of the potential success of the largest cryptocurrency is Jan Van Eck, the CEO of global investment manager VanEck. The CEO shared his overall take on the market in a recent interview with Forbes at the Consensus Cryptocurrency Conference in Austin, Texas. Discussing his hopes for Bitcoin’s future, he went on to state that he believes Bitcoin could reach $250,000. However, he added a caveat that this could take a few years.
Why bitcoin you ask?
Comparing Bitcoin to gold, Van Eck stated:
“Buyers see it (bitcoin) as a complement to gold. That’s the fast model… And it’s very tedious, practically impossible to vary that. Bitcoin will rise to half the market cap of gold, or $250,000 per bitcoin, but that may take many years. It’s tedious to set a timeframe for that.”
Discussing why he holds this opinion, Van Eck explained that the coin’s institutional acceptance has increased. Additionally, with increasing institutional acceptance over the coming years, the value of Bitcoin should typically increase over time.
“And its (Bitcoin) institutional acceptance is growing year by year. It’s not just institutional buyers, but governments around the world who need to see it as a helpful asset. My assumption is that just like silver’s historical function, it will have a place in portfolios. Gold was the first asset, but people usually bought silver or other precious metals. Individuals looking for a valuable trader will be looking for gold, but also for Bitcoin. We are in the middle of this adoption cycle and there may be additional benefits.”
Van Eck advised investors on how much Bitcoin should make up their investment portfolios, stating that this should be “anywhere between ½% and 3%” of their investment portfolios.
Additionally, he mentioned his company’s struggles in obtaining Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF it applied for over five years ago.
“The SEC does not want to approve a bitcoin ETF until it gains jurisdiction over the underlying cryptocurrency exchange, which must be done through legislation. And in an election year, there are unlikely to be laws. I am pleased that there are bipartisan discussions about what these laws should look like,” he said.
Mr. Van Eck’s prophecy put to the test
Despite the severe ongoing market capitulation, data from Glassnode showed general bullish sentiment towards the coin. In a steady upward trend, the number of addresses holding over one bitcoin recorded an ATH, which stood at 851,921 at press time. With this continued bullish stance, the largest cryptocurrency could be on track to reach a spot near $250,000 as predicted.
Source: Glassnode
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