The price of bitcoin could hit $150,000 or even $20,000 before its bull run “exhausts itself,” according to the managing director of FX strategy at BK Asset Management Boris Schlossberg.
Speaking in an interview during CNBC’s “Trading Nation,” Schlossberg noted that institutional interest in bitcoin “bodes well for the asset,” and noted the cryptocurrency’s price can “absolutely” hit $50,000, before noting that those trading on investing in crypto must have the mentality that “it’s going to have a huge amount of volatility.”
Per the analyst bitcoin’s “ultimate valuation” is “impossible to say.” He pointed to the tulip mania as an example, noting that at its peak “one tulip was worth basically about one house.” He added:
If you do use that kind of valuation, then it still has a long way to go because its ultimate terminal valuation could be $150,000, $200,000 before the whole move kind of exhausts itself.
He added that there’s “still quite a lot of potential,” although there’s going to be “massive volatility while we get there.” His words seemingly implied it may be a bubble. During the same “Trading Nation” Mark Newton, founder and president of Newton Advisors, said that BTC’s charts are “quite bullish on an intermediate-term basis.”
He added that BTC’s charts show the current bull run could peak in January, even though its relative strength index shows rising interest from institutional investors. Goole searches for the cryptocurrency are also up year-over-year while being “nowhere near” their highs from 2017.
Newton added he doesn’t believe investors currently have “quite the appetite for crypto while the institutions are certainly very much heading in that direction.” His other chart hinted BTC’s current direction will soon turn. He said:
All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower.
Newton, who is long BTC, ETH, LTC, and other cryptoassets, said he would look to sell his position “in the next one or two weeks,” as he believes there will be a buying opportunity for investors in the near future.
Featured image via Pixabay.
