As the price of Bitcoin begins to touch its January 2021 lows, the majority of the market is motivated by fear. Players in the market have now commenced massive distribution of the coin to salvage their investments. However, many who believe in the intrinsic value of Bitcoin, still hold the token in anticipation of a bullish run.
One of those bullish on the eventual success of the largest cryptocurrency is Jan Van Eck, the 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 toward the market. Speaking on his hopes for the future of bitcoin, he further stated that he believes bitcoin could hit $250,000. He however added a caveat that this might take a few years.
Why Bitcoin, you ask?
Comparing Bitcoin to gold, Van Eck stated that:
“Buyers see it (Bitcoin) as a complement to gold. That’s the quick model… And it’s very arduous, virtually not possible, to vary that. Bitcoin will go to half the market cap of gold, or $250,000 a Bitcoin, however that might take many years. It’s arduous to place a time-frame on it.”
Speaking on why he holds this opinion, Van Eck stated that there has been a growth in institutional adoption of the coin. Furthermore, with more institutional adoption in the coming years, the value of Bitcoin should ordinarily grow over time.
“And its (Bitcoin) institutional adoption is rising yearly. It isn’t simply institutional buyers, but additionally, governments world wide that need to see it as a helpful asset. My base-case assumption is that it’ll take a spot in portfolios just like silver’s historic function. Gold was the first asset, however typically folks purchased silver or different treasured metals. Individuals searching for a retailer of worth will look to gold, but additionally to Bitcoin. We’re within the centre phases of that adoption cycle, and there may be additional upside.”
Advising investors on how much Bitcoin should make up their investment portfolios, Van Eck stated that this ought to be “someplace between ½% to 3%” of their investment portfolios.
In addition, he mentioned the troubles faced by his company in obtaining approval from the Securities and Exchange Commission (SEC) for a spot Bitcoin ETF which was applied for over five years ago.
“The SEC doesn’t wish to approve a Bitcoin ETF till it will get jurisdiction over the underlying cryptocurrency exchanges, which has to occur via laws. And in an election year, it’s unlikely that laws will occur. I’m excited that there are bipartisan conversations about what those laws ought to seem like” he said.
Mr. Van Eck’s Prophecy Put to Test
In spite of the severe ongoing market capitulation, data from Glassnode revealed a general bullish sentiment towards the coin. On a steady uptrend, the number of addresses holding over one Bitcoin registered an ATH to stand at 851,921 at press time. With this continued bullish attitude, the largest cryptocurrency might be on its way to marking a spot at $250,000 as predicted.