Bitcoin prices were carving new records Wednesday but where the cryptocurrency heads are from here is an open question.
BTCUSD single bitcoin s,
hit a high of $ 51,735.38 earlier in the day, according to CoinDesk and forecasts see the world’s No. 1 crypto doubling before the end of the year, with some insisting that the current rally of the assets is significant to “unsustainable” levels. ”
On Wednesday, Anthony Scaramucci, founder of SkyBridge Capital, and a newfound investor in cryptos, predicted that bitcoin would hit $ 100,000 by the end of the year, but suggested that investors be wary of buying digital assets. SkyBridge Bitcoin Fund LP has about $ 500 million in bitcoins, Scaramucci said.
“I think we’ll see $ 100,000 in this coin by the end of the year,” said Scaramucci. “It’s just a matter of supply and demand,” he told the business network’s “Squawk Box,” commenting on the growing demand for bitcoins from institutions and the decline in the supply of the asset.
Many bitcoin bulls indicate that only 21 million bitcoins can ever exist due to a situation described in its original source code as a factor that is likely to give the asset a higher price now and in the future.
Scaramucci also noted MicroStrategy Inc. Bitcoin-loving MSTR announced Wednesday that the flexible debt offer announced the previous session, in which the currency will be used to increase BTCUSD bitcoin, + 4.68%, by 50% to $ 900 million, noting the potential for greater adoption of cryptos.
On Tuesday, the head of SkyBridge warned that bitcoin could suddenly fall 20% to 50%, during a CNN interview. He said he believed the price of the asset would be stable nonetheless.
Meanwhile, a research note from JPMorgan Chase & Co. showed. it was announced Tuesday that bitcoin volatility is priced around $ 48,000, volatile.
In other words, bitcoin, at current market prices, has more than doubled compared to gold in terms of risk capital. In our view, if bitcoin’s volatility does not go down quickly from here, its current price of $ 48,000 looks volatile, ”wrote the bank’s strategists, including Nikolaos Panigirtzoglou .
Despite a statement aimed at growing institutional interest in bitcoins, JPMorgan argues that the rise of bitcoin has come amid a small rise in corporate buying.
“What has been amazing over the last five months is the $ 700[billion] an increase in bitcoin market potential has occurred with minimal institutional flow, ”wrote JPMorgan.
The bank claims that the total investment in bitcoin is from such companies as Tesla Inc. TSLA,
recently, it is only about $ 11 billion since the end of September, which it says represents just 1.5% of the increase in the market value of the asset.
JPMorgan offers two theories as to why prices have gone up to records on relatively small new interest.
The foundation says an unstable supply of bitcoin from mining and a base price offered to existing holders to participate with their coins helps buoy prices. The other possibility, JPMorgan says, is that individual investors are delivering a greater shift to bitcoin prices than previously thought.
“The second potential is that inflow of sales has significantly expanded the institutional inflow. As mentioned in the first section above, the U.S. sales push has been particularly strong since January and there is little doubt that this sales push has been a driving force not only for identities, but also for bitcoin, ”the strategies write.
In any case, bitcoin prices are still rising on the back of growing attention from traditional investors. Several famous Wall Street players, including Stanley Druckenmiller and Paul Tudor Jones, have embraced bitcoin. Well-known investor Bill Miller, founder of Miller Value Partners, confirmed in a letter to messages earlier this month published on the company’s website, his bullish view on bitcoin.
In Wednesday’s trading, bitcoin prices have risen 77% year to date, while the Dow Jones industrial average DJIA,
went up 2.9%, the S&P 500 SPX,
rose 4.4%, and the Nasdaq Composite COMP,
indices rose 8.3% to date in 2021.