Bitcoin’s worth may exceed $50,000 over the long run as the digital asset vies with gold for funding flows, in accordance with cryptocurrency trade Luno and brokerage OSL.
“We’re talking about Bitcoin over the next three, five, 10 years slowly inching away at gold’s market capitalization,” Vijay Ayyar, head of Asia Pacific with crypto trade Luno in Singapore, mentioned in an internet query and reply session with Bloomberg Tuesday. If that occurs, “you are way over $50,000,” he mentioned.
Bitcoin quadrupled final yr, ultimately reaching an all-time excessive of virtually $42,000 in early January earlier than sliding again by about $10,000. The rally break up opinion, with some commentators pointing to elevated curiosity from long-term traders and others citing speculative shopping for.
While Bitcoin has been in style for buying and selling, “increasingly the new to market money that we are seeing is buying Bitcoin as a hedge to inflation and as digital gold,” mentioned Matt Long, head of distribution and prime brokerage at digital-asset platform OSL in Hong Kong.
Predicting a worth for Bitcoin is difficult however it’s more likely to rise long term as funds and household workplaces assign 0.5% or 1% of their portfolios to it, Long added.
Bitcoin, which has climbed 9% this yr, was buying and selling at about $31,500 as of seven a.m. in London on Tuesday.