Bitcoin would hit $500,000 in 2027, this billionaire is confident

Bitcoin price is currently falling. Despite this bear market, many voices are being raised to prophesy an explosion in the price of cryptocurrency in the years to come. A famous investor even expects Bitcoin at $500,000 by 2027.

After the bullish rally initiated at the end of 2020, the price of Bitcoin gradually contracted. Cryptocurrency is temporarily gone below $20,000, unheard of for 18 months. The crash of the UST stablecoin, the bankruptcy of Celsius and the Voyager Digital platform were kept to the sharp decline in the digital asset market. Mirroring Bitcoin, most cryptocurrencies are indeed displayed in the red.

© CoinMarketCap

Faced with this sluggish market, some observers fear the worst. This is the case of Russell Thomson, CEO of the digital asset management company LibertyRoad Capital. More recently, industry expert Kevin O’Leary concurred, saying Bitcoin could very well dip below $13,000. Some crypto-asset holders are even more pessimistic. According to a survey by MLIV Pulse, 60% of investors expect Bitcoin to crash around $10,000 in the near future.

On the same theme: Are cryptocurrencies in danger? A study lists the flaws of blockchains

Towards an explosion in the price of Bitcoin?

Despite the prevailing anxiety, a plethora of investors continue to believe in the future of cryptocurrencies. This is for example the case of Mike Novogratzthe billionaire behind the investment fund Digital Galaxy. According to him, the price of Bitcoin should reach $500,000 within 5 years, i.e. by 2027. To achieve this, the currency must climb more than 600% from the record high of $69,000 reached in last November.

Asked by the Kitco site during the Bloomberg Crypto Summit, the famous investor revealed that the gradual adoption of cryptocurrencies will inevitably boost the price of digital currency. He mainly met before the growing interest of institutions for the sector.

“We continue to see institutions … that have not yet come forward, that see this as an opportunity. Institutions are not diving into it with both feet at the moment because people who work in institutions are a little more cautious”says Mike Novogratz, assuring that institutions will jump back into crypto as soon as the market picks up again.

Since 2020, a host of institutional investors have entered the world of cryptocurrencies. These include the Commonwealth Bank of Australia, Australia’s largest bank, Goldman Sachs, the famous American investment bank, and pension funds such as the Queensland Investment Corporation. According to a study by investment bank JP Morgan, institutional investors have abandoned goldthe safe haven par excellence, in favor of Bitcoin in 2021. A report by the Dutch management company Intertrust Group even estimates that investment funds will allocate 7.2% of their portfolio to cryptocurrencies within 5 years.

Mirroring many defenders of the ecosystem, he asserts that Bitcoin will eventually establish itself as a bulwark against inflation fiduciary currencies (dollar, euro, etc.). According to him, Bitcoin, real or digital, is tailor-made to be an anti-inflation store of value”. For the time being, the queen of cryptocurrencies nevertheless remains correlated to stock market shares, in particular to technology stocks traded on Wall Street.

Mike Novogratz is not the only investor to show an unfailing optimism. Bill Millerfamous American investor and fund manager, has also converted half of his fortune into Bitcoin in anticipation of the future rise in the price.

Source :

Kitco

Leave a Comment