Bitcoin gained another 13.1% in the past 24 hours and was trading above $23,500 for the first time in history on Thursday morning. The bitcoin rally has triggered a wave of new bullish bitcoin targets on Wall Street, and deVere Group is now calling for at least 50% more upside in 2021.
deVere Group founder and CEO Nigel Green said he doesn’t believe 2021 will be a repeat of 2018.
“Inevitably, we will soon see some pullback on prices and more volatility as traders sell Bitcoin at record high prices,” Green said.
He noted that this profit-taking is a natural and healthy part of any bull market and can serve as attractive entry points for long-term investors.
“Indeed, it could prove to be particularly beneficial as Bitcoin is, I believe, likely to have another record-breaking year in 2021, with prices expected to rise 50% and possibly double with its current momentum,” Green said.
Based on his comments, Green is anticipating bitcoin prices will reach somewhere between around $30,000 and $40,000 within the next 12 months.
Debate Rages On: While that target may seem overly optimistic given that bitcoin has already rallied 228% in the past year, Green is far from the most bullish bitcoin analyst. On Wednesday, Guggenheim CIO Scott Minerd told Bloomberg he believes bitcoin “should be worth around $400,000.”
Bitcoin is one of the most polarizing topics on Wall Street, with many bulls seeing nearly unlimited upside and bears viewing the cryptocurrency as virtually worthless. Wall Street investing legend and bitcoin bear Warren Buffett has referred to bitcoin as a “mirage” and “rat poison squared.”
“Of course, there will be market ups and downs, but let there be no doubt: the longer-term price trajectory for Bitcoin is upwards,” he said.
Following Thursday’s gain, the Grayscale Bitcoin Trust (OTC: GBTC) is now up 215.1% year-to-date.
Benzinga’s Take: A key driver of the bitcoin rally is concerns over the negative impact unprecedented government stimulus spending could have on the dollar.
A cryptocurrency’s supply is fixed, it doesn’t have the intrinsic value of a share of stock or a plot of real estate, and it doesn’t have the yield of a bond or certificate of deposit. Therefore, the prices of cryptocurrencies in the long term will be determined only by changes in long-term demand from investors and users.
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