Bitcoin could reach $100K: 'Sky is the limit,' Ben Emons says

Both gold (GC=F) and bitcoin (BTC-USD) prices are rallying to record highs. Bitcoin peaked above $72,000 Monday morning, and Wall Street experts see the cryptocurrency climbing even higher in its rapid rebound in 2024.

NewEdge Wealth Senior Portfolio Manager and Head of Fixed Income & Macro Ben Emons joins Yahoo Finance Live in-studio to discuss bitcoin's trajectory, telling investors to "[not] be surprised" if it rises to its "first major milestone" of $100,000.

"it is a diversification because if you have that high of a gain or expect a return against where equity volatility currently is... that is a possibility for diversification in a portfolio," Emons explains. "That's become a more serious asset, I think, ever since the SEC [Securities and Exchange Commission] approved those [spot bitcoin] ETFs. Given the institutional interest currently, this is becoming an asset that is a diversifying asset, a scarce asset in a portfolio."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

BRAD SMITH: And at these levels that we're at-- you're a very reasonable man, Ben. You're a marathoner. You're well-calculated here-- how high can Bitcoin go as you think about the scarcity that you were just laying out a moment ago?

BEN EMONS: Yeah. This comes together with the demand for bitcoins from these ETFs. That you mentioned like $10 billion or so got into those ETFs. And those managers have to buy the actual coins. It's no longer with futures or other proxies.

BRAD SMITH: But that relies on people who already hold Bitcoin being willing to sell as well.

BEN EMONS: Exactly. And there's been limited selling, if not any. Their ETFs websites, you can track the liquidation of Bitcoin. It's very limited that's happened so far. Then you have this halving event, which, again, that is actually slowing the rate of bitcoins together with how it gets produced and mined.

So it comes all together in one. And then, I think, it's a cocktail of like, yeah, then it breaks out above the highs. And how can it go? Well, sky is, obviously, the limit. My guess is it's going to go probably at like a $100,000 or so. That will be your first major milestone.

I think don't be surprised that you actually reached that level.

SEANA SMITH: So Ben, what is your advice then to investors out there? Should they tread carefully, given the fact that the price of both of these assets is so volatile?

BEN EMONS: True. Because let's face it, the gains are extraordinary, particularly, for Bitcoin. I think they've calculated from somewhere like more than 10 years ago, have bought one Bitcoin, you've made like 7,000,000%. Will you make the next seven million? Now that's, volatility, obviously. So clearly, we want to be careful.

But think about the long-term prospect of the asset, as well as in gold. Why do they exist? Now, most of the institutional investors don't really play in that space until maybe now. That's I think one other force behind this that it could go higher.

Secondly, it is a diversification, because if you have that high of a gain or expected return against where equity volatility currently is, which is really low, that is a possibility for diversification in a portfolio. So that's become a more serious asset, I think, ever since the SEC approved those ETFs.

And given the institutional interest, currently, yeah, this is becoming an asset that is a diversifying asset, scarce asset in the portfolio.

BRAD SMITH: And is what's true for Bitcoin expected to be the same for Ether or Ethereum? Because, now, we've got applications lining up for Ether or Ethereum. That's still a heavy topic of conversation and contention. I won't weigh down that route.

But if we see ETFs come forward, if we see more utilization come forward on the ether side, is what we've seen in Bitcoin in this run up expected to be the same there?

BEN EMONS: So one difference with Bitcoin with Ethereum is that Ethereum has unlimited supply, because it's a gas. That's actually how it's created. But people looking at the correlation between the two, and people have always said, like, well, Ethereum is really the benchmark for blockchain technology.

And that's, I think, the fundamental reason for the digital currency to exist is that central banks may not go all to digital currencies just yet. Case in point, the Federal Reserve. But the implementation of blockchain technology is supported by central banks. And that supports Ethereum.

So once that also gets approved as ETF, you'll likely see a similar interest from institutions and retail public to buy the ETF on Ethereum.