Crypto

Bitcoin Will Hit $500,000 In 2027, This Billionaire Is Confident

The price of bitcoin is currently falling. Despite this bear market, many voices predict an explosion in cryptocurrency prices in the coming years. The well-known investor even expects Bitcoin to be worth $500,000 by 2027.

After the bullish rally that began at the end of 2020, the price of bitcoin has been gradually declining. The cryptocurrency briefly fell below the $20,000 mark, which was unheard of in 18 months. The collapse of the UST stablecoin, the bankruptcy of Celsius and the Voyager Digital platform contributed to a sharp drop in the digital asset market. Reflecting Bitcoin, most cryptocurrencies are indeed displayed in red.

© CoinMarketCap

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

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On the way to exploding the price of bitcoin?

Despite the awe, many investors continue to firmly believe in the future of cryptocurrencies. This is, for example, the case of Mike Novogratz, the billionaire behind Galaxy Digital investment fund. According to him, the price of bitcoin should reach $500,000 within 5 years, i.e. by 2027. To do this, the currency must rise more than 600% from the all-time high of $69,000 reached last November.

When asked by the Kitco website during the Bloomberg Crypto Summit, a well-known investor estimated that the gradual introduction of cryptocurrencies will inevitably increase the price of the digital currency. First of all, it highlights the growing interest of institutional investors in this sector.

“We’re still seeing institutions… that haven’t gotten involved yet, that see this as an opportunity. Institutions are not diving into it with both feet right now because the people who work in institutions are a little more careful,” says Mike Novogratz, assuring that institutions will return to crypto as soon as the market picks up again.

Since 2020, a lot of institutional investors have entered the world of cryptocurrencies. These include Commonwealth Bank of Australia, Australia’s largest bank, Goldman Sachs, a prominent US investment bank, and pension funds such as the Queensland Investment Corporation. In 2021, institutions have also moved away from gold, the main safe-haven, in favor of bitcoin, according to a study by investment bank JP Morgan. portfolio to cryptocurrencies for 5 years.

Mirroring many of the ecosystem’s advocates, he argues that Bitcoin will eventually prove itself as a bulwark against the inflation of fiduciary currencies (dollar, euro, etc.). According to him, bitcoin, the real digital gold, is “ designed specifically to be an anti-inflationary store of value.” For now, the queen of cryptocurrencies, however, remains correlated with stock market stocks, specifically tech stocks traded on Wall Street.

Mike Novogratz isn’t the only investor showing continued optimism. Bill Miller, a well-known American investor and fund manager, also converted half of his fortune into bitcoin in anticipation of future price increases.

Source :

Kitko

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