While 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 distributing the coin massively to save their investments. However, many who believe in bitcoin’s intrinsic value are still holding the token in anticipation of a rise.
One of those who are optimistic about the eventual success of the largest crypto-currency is Jan Van Eck, the CEO of a global investment manager, VanEck. In a recent interview with Forbes, at the Consensus Cryptocurrency Conference in Austin, Texas, the CEO shared his general view of the market. Talking about his hopes for bitcoin’s future, he said he thinks bitcoin could hit $250,000. He added, however, that it could take a few years.
Why bitcoin, you ask?
Comparing bitcoin to gold, Van Eck said that: Read also: 33-year-old woman scammed out of 300,000 BTC in dating app scam.
“Buyers see it (bitcoin) as a complement to gold. It’s the fast model… And it’s very difficult, almost impossible, to change that. Bitcoin will reach half the market capitalization of gold, or $250,000 per bitcoin, but it could take many years. It is difficult to establish a timetable. »
Explaining why he takes 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, the value of bitcoin should normally increase over time.
“And its institutional adoption (of bitcoin) is growing every year. It is not only institutional buyers, but also governments around the world who need to see it as a useful asset. My basic assumption is that it will occupy a place in portfolios, much like the historical function of money. Gold was the first asset, but people usually bought silver or other precious metals. People looking for a store of value will look to gold, but also to bitcoin. We are in the middle phases of this adoption cycle, and there may be further upside. »
Advising investors on Bitcoin’s share of their investment portfolios, Van Eck said it should be “somewhere between ½% and 3%” of their investment portfolios.
Additionally, he mentioned his company’s difficulties in obtaining Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF, the application for which was filed over five years ago.
“The SEC does not wish 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 be passed. 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 uptrend, the number of addresses holding more than one bitcoin registered an ATH to stand at 851,921 at press time. On the same subject : Cardano: The “update cycle” tells us what is next.. With this continued bullishness, the biggest cryptocurrency might be close to scoring a spot at $250,000 as expected.
Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over two years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.