Bitcoin: Why This Investment Expert Thinks BTC Could Hit Highs of $250,000

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Like the price of bitcoin [BTC] begins to touch its January 2021 lows, the majority of the market is driven by fear. Market players have now started a massive distribution of the coin to save their investments. However, many who believe in Bitcoin’s intrinsic value are still holding the token in anticipation of a bull run.

One of those optimistic about the eventual success of the biggest cryptocurrency is Jan Van Eck, CEO of a global investment manager, VanEck. The CEO, in a recent interview with Forbes, at the Consensus Cryptocurrency Conference in Austin, Texas, shared his general outlook on the market. Speaking about his hopes for the future of bitcoin, he further stated that he believes bitcoin could hit $250,000. He added a caveat, however, that it could take a few years.

Why Bitcoin, you ask?

Comparing Bitcoin to gold, Van Eck said that:

“Buyers see it (Bitcoin) as a complement to gold. It’s the fast model… And it’s very difficult, practically impossible, to vary that. Bitcoin will go to half the market cap of gold , or $250,000 per bitcoin, but it could take many years, it’s hard to put a timeline on it.

Speaking on why he holds this view, Van Eck said there has been a growth in institutional adoption of the coin. Also, with more institutional adoption in the coming years, Bitcoin’s value should normally increase over time.

“And its institutional adoption (Bitcoin) is growing every year. It is not only institutional buyers, but also governments around the world who must consider it a useful asset. My basic assumption is that it will take up a place in portfolios, just like the money history function. Gold was the first asset, but usually people bought silver or other precious metals. People looking for a retailer of value will look to gold, but also to Bitcoin. We are in the middle phases of this adoption cycle, and there may be additional benefits. »

Advising investors on how much bitcoin should make up their investment portfolios, Van Eck said it should be “between ½% and 3%” of their investment portfolios.

In addition, he mentioned the difficulties his company faced in obtaining Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF that was requested more than five years ago.

“The SEC does not want to approve a Bitcoin ETF until it has jurisdiction over the underlying cryptocurrency exchanges, which must be done through laws. And in an election year, laws are unlikely to happen. I’m glad there are bipartisan conversations about what these laws should look like,” he said.

Mr. Van Eck’s prophecy put to the test

Despite the ongoing severe market capitulation, data from Glassnode revealed an overall bullish sentiment towards the coin. On a steady upward trend, the number of addresses holding more than one bitcoin registered an ATH to stand at 851,921 at press time. With this continued bullishness, the biggest cryptocurrency could be on course to score a spot at $250,000 as expected.

Source: Glassnode


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