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History doesn’t repeat itself, but it rhymes, says Fundstrat Global Advisors strategist David Grider.
- The world’s largest digital currency is in the midst of a lush rally that this week saw it cross above $ 18,800 in nearly three years.
- Cryptocurrency fans are citing many reasons why it may continue to work this time.
- Famous billionaire investor Mike Novogratz says he sees “tons of new buyers” amid “low supply.”
The Bitcoin mania is back and with it the return of soaring predictions from famous crypto fund managers to Wall Street stalwarts about where it can go next.
The world’s largest digital currency is in the midst of a lush rally that this week saw it cross above $ 18,800 for the first time in nearly three years. Strategists and crypto fans are now rushing to project their next never-before-seen heights. Outside of the timeless “moon” pronouncements from Twitter experts, forecasts range from $ 25,000 to more than $ 300,000 by the end of next year.
Here’s what helped Bitcoin’s run: A warmer embrace from companies like Fidelity Investments and JPMorgan Chase & Co. is often cited as a catalyst, as is PayPal Holdings Inc.’s decision to allow its clients access to. cryptocurrencies. Then there is always the FOMO, or the fear of missing out, as prices go up. For crypto evangelists, these developments are only the first junctures on the road to ubiquity.
“All of a sudden you have this near-perfect backdrop that not only lends validity to the asset class, but also really demonstrates its staying power,” said Michael Sonnenshein, managing director of Grayscale Investments, which operates the largest cryptocurrency trust. that is publicly traded. It’s “once again showing investors, no matter how many times you are challenged, that you have a way of coming out almost stronger or showing your ability to be really, really resilient.”
Amid Bitcoin’s euphoric run this week, Fundstrat Global Advisors strategist David Grider raised his price target for the end of 2021 to $ 25,000 from $ 16,500, or about another 40% higher than the closing price. Friday.
Grider is based on an internal model that analyzes valuations and takes into account the prices of cryptocurrencies. In 2017, when Bitcoin rose to close to $ 20,000, its all-time high, its frame showed that the coin was in an “incredible bubble.” He says he got that call right and is confident his model will work this time too.
“History doesn’t repeat itself, but it rhymes,” said Grider, the firm’s chief digital asset strategy officer. “The audience is bigger, the market is bigger, it’s a bit more institutionalized, there are different fields of capital coming in.”
To be sure, Grider’s forecast sounds familiar to crypto veterans. Fundstrat co-founder Tom Lee had started 2018 with a year-end price target of $ 25,000, before finally dropping the deadlines for his predictions in December, when it was in the $ 3,000 to $ 4,000 range.
Still, crypto fans are citing many reasons why it may continue to work this time. Famous billionaire investor Mike Novogratz says he sees “tons of new buyers” amid “low supply.”
Novogratz, who is the founder of Galaxy Digital, has not been shy about his views on Bitcoin and this week said he sees it reaching $ 65,000. His comments came via Twitter in response to a question posed by the Bitcoin star. “Game of Thrones” Maisie. Williams, who asked his 2.7 million followers if he should invest in the coin. (She did.)
Bitcoin would need more than triple to reach Novogratz’s goal. In November 2017, the former hedge fund manager had predicted that the coin would hit $ 40,000 by the end of the following year, only to see it finish below $ 4,000.
The most optimistic headline projections are those that see Bitcoin hitting $ 100,000 or more. Tom Fitzpatrick, a strategist at Citigroup Inc., caused a sensation this month when he said crypto could go as high as $ 318,000.
