According to the CEO of Swiss bank Seba, Bitcoin’s price might nearly double this year to $75,000 as more institutional investors embrace the world’s most popular cryptocurrency.
At the Crypto Finance Conference in St. Moritz, Switzerland, on Wednesday, Guido Buehler told CNBC’s Arjun Kharpal, “We feel the price is going higher.”
“Our internal valuation models estimate a price of $50,000 to $75,000 right now,” said the CEO of a regulated Swiss bank. The CEO specializes in cryptocurrencies. “I’m fairly optimistic we’ll reach that level.” The issue is always one of time.
BTC’s Market Trend
After reaching an all-time high of $69,000 in November, bitcoin’s value has plummeted in recent months. With the price briefly falling below $40,000 on Monday, putting it near lows not seen since September.
When asked if bitcoin will retest last year’s highs, Buehler said he “thinks so,” but warned that volatility will remain high.
Rising Treasury yields — and the threat of increasing central bank interest rates — prompted investors to sell risky, growth-oriented assets this week. Therefore, it resulted in a price drop.
According to Coin Metrics, Bitcoin plummeted as much as 6% on Monday, reaching a low of $39,771.91. On Wednesday at roughly 5 a.m. ET, it was trading at $42,921.55.
Following a week of bumpy trading for equities, particularly momentum stocks, the cryptocurrency market has declined. Investors have been shifting towards more cyclical and value names since the 10-year US Treasury yield jumped at the start of 2022. After closing 2021 at 1.5 percent, the 10-year soared as high as 1.8 percent on Monday.
“Over the last six months, we’ve seen bitcoin behave like a risk asset on multiple occasions,” Noelle Acheson, Genesis’ head of market insights, said.
“Bitcoin plummets when the stock market is shaky.” The jump in the 10-year has frightened market sentiment. However, it is bad news for any asset with high cash flow volatility. Bitcoin, unlike many other assets that have been tarnished by this brush, is liquid. Because of this, it can withstand greater selling pressure without suffering a significant loss.”
Institutional Investors Helps Bitcoin Price in 2022
“Institutional money will probably drive the price up,” he said. “We are working as a fully regulated bank. We have asset pools that are looking for the right times to invest.”
However, according to Pascal Gauthier, CEO of crypto wallet Ledger, bitcoin is currently in a “retail trend,” as reported by CNBC on Wednesday.
“People are increasingly trusting bitcoin, and it is the people who will drive the price upward,” he stated.
Seba Bank looked studied the technology that underpins cryptocurrency before requesting a regulatory license. This is according to Buehler. He added that it is determined that it will “redefine finance.”
The crypto market is “yet another wobble,” according to Californian venture capitalist Bill Tai, who spoke to CNBC from Switzerland on Wednesday.
Cryptocurrencies, he argued, are at the heart of institutional acceptance.
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