Bitcoin may hit $100,000 by the start of next year, according to the CEO of a new crypto-products platform.
CoinList CEO Graham Jenkin is positive on bitcoin, which reached a fresh record high of $66,000 on Oct. 20 following the introduction of a highly anticipated US bitcoin futures exchange-traded fund. The digital currency has subsequently given up some of its gains, trading at $59,052 per coin at 6:45 a.m. London time Thursday.
However, Jenkin felt bullish about bitcoin’s future growth.
“The majority of the CoinList staff will wager that we will reach $100,000 before the end of the year. Not sure whether we’ll make it, but that’s our forecast for the start of the year.”
CoinList just announced $100 million in series A fundraising, valuing the company at $1.5 billion.
Numerous financial analysts and companies believe the currency will reach, if not exceed, the $100,000 milestone. They attribute bitcoin’s growth to inflation and the ETF introduction, portraying it as an inflation hedge.
Paul Tudor Jones, a billionaire investor, told CNBC earlier this month that he prefers cryptocurrencies to gold as an inflation hedge.
“There is a strategy for cryptocurrency, and it is definitely winning the race against gold at the time… That, I believe, would also be an excellent inflation hedge,” Jones said on CNBC’s “Squawk Box.” “At the time, that would be my favorite option above gold.”
Meanwhile, Fidelity Investments forecasts the currency reaching $100,000 but over a considerably longer period of time.
According to CNBC this month, Jurrien Timmer, Fidelity’s director of global macro, the estimate is based on a supply and demand model he studies. “The next and final time those two models cross paths is in a couple years at $100,000,” he explained.
Nonetheless, there are a sizable number of bitcoin skeptics.
Jamie Dimon, CEO of JP Morgan Chase, recently described bitcoin as “worthless,” following prior assertions that the currency lacked “intrinsic value.”
And, while he believes bitcoin will survive in the long run, he told Axios in early October: “I’ve always felt it will be made illegal somewhere, just as China did, so I believe it’s a little bit of fool’s gold.”
He said that he believes “regulators will regulate the living daylights out of it.”
United Wholesale Mortgage
United Wholesale Mortgage, the country’s second-largest mortgage lender, canceled its proposal to accept bitcoin payments earlier this month, citing “the present combination of added expenses and legal uncertainties in the crypto industry.”
Bitcoin bulls Mark Yusko warns of a fall and overbought market, expecting investors to profit from bitcoin’s current high price.
“Given how overbought we are at the moment, a pause that rejuvenates would not surprise me,” Yusko said. “There is a possibility of rumor purchasing and news selling.” But Yusko thinks profit-taking is temporary and that bitcoin will hit $250,000 in five years.
Of course, being bullish on bitcoin works quite well for CoinList. However, the cryptocurrency’s frequently spectacular volatility does not inherently harm the platform, according to its CEO.
“As far as the impact of the bitcoin price on our platform is concerned, there is definitely some impact, but it is typically separated from what is happening with the bitcoin price and the eagerness of our community to gain access to early-stage tokens and offerings on the platform, so it has a smaller impact,” Jenkin said.
This would be a significant challenge for our platform, but we don’t expect it to happen soon.