Coinmarketcap reported on Saturday, June 30, that Bitcoin hit a weekly all-time high of $6,437.73. The unexpected surge was a large increase from the digital currency’s monthly low of $5,838.80 on Thursday, June 28. While many are bearish about Bitcoin’s value in 2018, the BitMEX CEO remains optimistic and believes that Bitcoin will reach $50,000 by the end of 2018.
Bitcoin’s value fell below $6,000 reaching the $5,800 mark just a few days ago. Ran Neu Ner, who is the host of CNBC’s Crypto Trader show, predicted that Bitcoin would fall lower and may hit $5,350 in the next few weeks.
However, Bitcoin has managed to increase its value by approximately $800 and hit the $6,600 mark with a 4% increase in its price today.
BitMEX CEO Predicts Bitcoin’s Value Will Increase
In early 2018, BitMEX CEO Arthur Hayes predicted that Bitcoin will reach $50,000 at the end of the year. He previously graduated from Wharton and was a traditional assets trader.
Hayes has also made appearances on CNBC’s Fast Money segment and commented that Bitcoin’s ability to reach new highs is still possible despite the bearish market.
“Well I think that something that goes up to $20,000 in one year can have a correction down to around $6,000.”
He also mentioned that the cryptocurrency market is almost “one positive regulatory decision away, maybe an ETF approved by the SEC, to climbing through $20,000 or even $50,000 by the end of the year.”
While it’s uncertain why Bitcoin’s price has increased, some speculate that the optimistic news concerning institutional investors moving into the market, especially since Blockchain Ltd. and Circle announced new products for institutional investors. Andreessen Horowitz also launched a new a16z cryptocurrency fund, which may have contributed to increasing retail investors confidence in the market.
Predictions About Cryptocurrency Market and Value Vary Significantly
While Hayes predicted that Bitcoin’s price would hit $50,000 by the end of the year, FundStrat co-founder Tom Lee believes that Bitcoin would hit $25,000.
Lee mentioned to CNBC:
“In 2013 to 2015, we went for $1,200 to $200. In 2015 to 2017 (we went from) $200 to $20,000. So, we’ve done these sort of moves before. I think the time span is going to shorten because you have many more people involved in the market, who have invested capital and resources to trade this asset class.”
John McAfee, the founder of McAfee antivirus and a long time Bitcoin supporter, also remains confident about his Bitcoin prediction. He believes that Bitcoin will reach $1 million by 2020 despite the bearish market.
On the other hand, “Wolf of Wall Street” Jordan Belfort claimed on Monday, June 25, that the Bitcoin market will crash soon. Belfort saw significant technological problems with Bitcoin and saw the limited potential for Bitcoin’s future.
Tony Richards, who is an economist and the head of payments policy at the Reserve Bank of Australia, agreed. He noted that, while they are fascinating “Bitcoin and other cryptocurrencies are yet to establish themselves as reliable stores of value.”
Richards also compared the cryptocurrency industry to the global money supply. He noted that the cryptocurrency industry is relatively small since its market capitalization is approximately $250 billion whereas the global money supply is roughly $15 trillion for currency and $90 trillion for broad money.