Bitcoin got off to a bad start in 2022, losing around 10% of its value and cutting the veils off the crypto market, even though some big-name investors are issuing huge bitcoin price predictions.
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The price of bitcoin, after swinging wildly for much of 2021, is only up 18% from this time last year as some other smaller cryptocurrencies make outsized gains.
Now, the head of a Swiss bank has predicted bitcoin could hit a new all-time high this year, based on his company’s “internal valuation models.”
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“Our internal valuation models indicate a price currently between $50,000 and $75,000,” Guido Buehler, managing director of Swiss digital asset bank Seba, said on the sidelines of the Crypto Finance conference in Switzerland, a- Was it reported by Yahoo finance, adding: “I’m pretty confident that we’re going to see this level. The question is always the timing.”
Buehler pointed to the expectation that institutional investors will embrace bitcoin in the months and years to come as a key driver of bitcoin’s price.
“Institutional money will likely push the price up,” Buehler said. “We work like a fully regulated bank. We have asset pools looking for the right time to invest.”
Bitcoin’s massive 2021 was fueled by the likes of Tesla
Meanwhile, Wall Street giants and institutional investors have raced to meet customer demand for bitcoin and cryptocurrencies in recent months as soaring digital asset prices tempt traders. Ultra-low interest rates and soaring inflation have driven up asset prices across the board over the past two years.
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Inflation, now at a nearly 40-year high in the United States, “shows how dangerously out of step the traditional fiat system, of which it is a key part as it is responsible for maintaining price stability. with reality,” Nigel Green, chief executive of financial advisory group deVere, said in emailed comments.
“I think this will fuel demand, and therefore the price of bitcoin and other cryptocurrencies.”
Bitcoin’s reputation as a store of value and a hedge against inflation has grown over the past two years, popularized in mainstream financial circles by famed investor Paul Tudor Jones who named bitcoin “the horse of the faster to beat inflation” in May 2020.
“With the fixed supply of 21 million bitcoins and institutional investors increasingly moving away from the crypto market, it will continue to overtake gold as a safe haven for capital,” Green said. .
“Money flows where it’s best treated, and with negative real yielding Treasuries, moving capital to the Fed is an obvious liability for investors.”