Thursday , November 26 2020

Bitcoin revival unleashes animal spirits and $ 300,000 predictions



History does not repeat itself, but rhymes, says Fundstrat Global Advisors strategist David Grider.

History does not repeat itself, but rhymes, says Fundstrat Global Advisors strategist David Grider.

  • The largest digital currency in the world is in the midst of a lush rally, which this week passed over $ 18,800 in almost three years.
  • Crypto fans cite many reasons why it can resume operations this time around.
  • Well-known billionaire investor Mike Novograc says he sees “tons of new buyers” in the middle of a “small supply”.

The bitcoin mania is back, and with it the celestial predictions from famous celebrity fund managers to Wall Street where it can go.

The world’s largest digital currency is in the midst of a tumultuous rally that this week crossed over $ 18,800 for the first time in almost three years. Strategists and crypto fans are now rushing to project their next unprecedented heights. Beyond the eternal to the “moon” announcements by experts on Twitter, forecasts range from 25,000 to more than 300,000 USD by the end of next year.

Here’s what helped Bitcoin run: a warmer hug like Fidelity Investments and JPMorgan Chase & Co. It is often cited as a catalyst, as is PayPal Holdings’ decision to give its customers access to cryptocurrencies. Then there is always the FOMO or the fear of being missed because prices fall higher. For crypto-evangelists, these developments are just the first crossroads on the road to ubiquity.

“Suddenly you have this near-perfect background that not only credits the validity of the asset class, but also really demonstrates its power to stay,” said Michael Sonnenshen, CEO of GraceKill Investments, which operates with the greatest crypto trust. which is traded in exchange. It “shows investors once again, no matter how many times it is challenged, that there is a way to appear almost stronger or to demonstrate its ability to be really, really resilient.”

Amid a euphoric Bitcoin run this week, Fundstrate Global Advisors strategist David Grider raised the price by the end of 2021 to $ 25,000 from $ 16,500, or about 40% higher than Closing Friday.

Grider relies on an internal model that reviews estimates and takes into account cryptocurrency prices. Back in 2017, when Bitcoin climbed to close to $ 20,000 – a record high – its frame showed that the coin was in an “incredible bubble”. He says that he received that call correctly and is convinced that his model will work this time as well.

“History does not repeat itself, but rhymes,” said Grider, head of digital asset strategy firm. “The audience is bigger, the market is bigger, it is a bit institutionalized – you have different fields of capital.”

To be sure, Grider’s prognosis sounds familiar to crypto veterans. Fondstrat co-founder Tom Lee kicked off 2018 with a year-end target of $ 25,000, before finally abandoning the timeframe for his forecasts in December, when it was around the $ 3,000 to $ 4,000 range. dollars.

However, crypto fans cite many reasons why this time it can continue its work. Well-known billionaire investor Mike Novograc says he sees “tons of new buyers” in the middle of a “small supply”.

Novograc, the founder of Galaxy Digital, was not shy about his views on Bitcoin and said this week that he sees it reaching $ 65,000. His comments came via Twitter in response to a question from Game of Thrones star Macy Williams, who asked her 2.7 million followers if she should invest in the coin. (She did)

Bitcoin will have to reach the goal of Novograc more than three times. In November 2017, the former hedge fund manager predicted that the coin would reach $ 40,000 by the end of next year, eventually ending below $ 4,000.

The most bullish mainstream projections are those that see Bitcoin reach $ 100,000 or higher. Tom Fitzpatrick, a strategist at Citigroup Inc., made a big hit this month when he said crypto could potentially reach as much as $ 318,000.


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