Bitcoin’s rally to a new record high Wednesday has analysts buzzing about the future of digital assets.
Shortly before 7:30am EDT (UTC-4), Bitcoin crossed the $65,000 threshold, a move that seemed to quell some of the skepticism surrounding cryptocurrencies as financial institutions look for ways to engage retail investors with crypto exchange traded funds.
However, not everyone sees the inherent value of Bitcoin’s gains. Some investors say retail investors will experience an even greater fall after the climb.
At press time, Bitcoin was up 6.35% on the day to $66,570.45 per coin.
‘Winning the race against gold’
“I think we are moving into an increasingly digitized world and clearly there is a place for crypto,” said the founder and chief investment officer of Tudor Investment Corporation.
Bitcoin has returned more than 35% to investors over the last month compared to a loss of 0.34% in value for gold.
So far this year, Bitcoin has gained more than 129% in value.
Naeem Aslam, chief analyst at AvaTrade, echoes Tudor’s bullish sentiments. He wrote in a note Wednesday that Bitcoin has the potential to keep climbing given its current trajectory and the interest generated by new Bitcoin ETFs.
“For years, cryptocurrency supporters had been eagerly awaiting the launch of a Bitcoin-linked ETF, and had been debating its utility with regulators,” Aslam wrote. “The ETF is expected to open up digital coins to large investors, hastening the adoption of cryptocurrencies.”
Jurrien Timmer, Director of Global Macroeconomics at Fidelity, told Yahoo! Finance Live that he has a specific price target for the asset: $100,000 by 2023.
“So this move up has come without the help of momentum chasers, which I think is a good sign because it means there is something else making Bitcoin go up,” Timmer said.
Despite Bitcoin fully recovering from its 50% drop earlier this year, there are still Bitcoin bears in the marketplace who say the asset is set for a price correction.
Earlier this month, JP Morgan Chase CEO Jamie Dimon famously declared that Bitcoin is “worthless” even though his company offers an in-house Bitcoin fund.
More recently, Mark Yusko, CEO of Morgan Creek Capital, told CNBC’s “Trading Nation” on Monday that Bitcoin is “overbought” and that there is some risk to “buying the rumour, and selling the news.”
For example, Yusko mentioned Bitcoin’s 17% fall after El Salvador accepted the asset as legal tender.