Bitcoin is now in a bullish trend, thanks to which the cryptocurrency has managed to grow in price by 156.3% over the past three months. Co-founder and ex-CEO of BTCC crypto exchange Bobby Lee believes that the current upward trend will bring the value of the main digital coin to $ 300 thousand, and then the “bubble will burst” and quotations will decline for many years, writes RBC Crypto.
Lee also predicts that Bitcoin will hit the $ 100,000 mark this summer. Previously, forecasts regarding the future of the first cryptocurrency were expressed by various experts. For example, Canadian investor and TV presenter Kevin O’Leary predicted a $ 20 trillion market cap for Bitcoin. Kraken CEO Jesse Powell believes that the value of the main digital coin will rise to $ 1 million in the next 10 years.
What is the ceiling
It is not worth focusing on populist statements about round highs in the value of bitcoin, says Janis Kivkulis, a leading strategist at EXANTE. He recalled that similar statements were made at the end of 2017. The ceiling for the price of bitcoin in the current bullish cycle could indeed be at almost any price level, Kivkulis explained.
“After the start of the market reversal, we can really see a prolonged fall in the value of crypto assets – this was the case in 2017 and 2020,” the strategist added.
Grigory Klumov, founder of the stable cryptocurrency platform STASIS, does not see any factors that could confirm the accuracy of Bobby Lee’s forecast.
Is there a bubble
The bubble is inflated not in the cryptocurrency market, but in the sector of alternative investments, Klumov explained. According to him, prices have risen not only for cryptocurrencies, but also for luxury real estate, paintings, as well as rare cars.
“Now the real rate on many deposits is below inflation, the yield on bonds also leaves much to be desired, and on the stock market the price-to-profit ratio scares investors. Therefore, the sector of alternative investments, especially liquid ones, is becoming attractive, “Klumov noted.”
Digital assets are distinguished by the fact that they are traded 24 hours a day, and it is unlikely that it will be possible to sell an expensive car or a rare painting quickly, the expert added. According to Klumov, capital outflow from the sector of alternative investments will occur when the real rate becomes above zero. Until that moment, money will continue to go into digital assets, the expert emphasized.
Now it is fairer to say that the cryptocurrency market is overheated, like the traditional asset market, but there is no talk of a “bubble”, Kivkulis added. In the current bullish cycle, no one is talking about the “pyramid”, “tulip mania”, “dot-com bubble”. At this stage, the meaning of the “bubble” is much closer to the perception of the situation on the stock market, the expert said. In his opinion, this is due to the arrival of large funds in the digital money industry.
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