Story by: Nick Chong
Over the past 48 hours, Bitcoin (BTC) has begun to locally top out, with buying pressure slowing and prices slightly slipping. One prominent investor, however, explains that we’re just getting started, looking to strong fundamentals in the broader cryptocurrency sector.
In fact, he explains that by year’s end, BTC will have moved past $20,000, and will be well on its way to prices unseen before.
Bitcoin To Hit $30,000, What?
Bitcoin passed $8,900 on the weekend, and investors across the board are buzzing. The words “cryptocurrency” and “blockchain” have returned to the vernacular of the public, as some of the world’s largest media outlets have begun to clamor to cover the ins and outs of this space once again.
To seemingly satisfy the need for insights on the crypto market, Bloomberg’s “Markets: Asia” segment recently called on Jehan Chu, a co-founder of Kenetic Capital, to talk up Bitcoin, and why this recent move to the upside is just the tip of the iceberg.
Our cofounder @collectionist today on Bloomberg @business making a bullish call on bitcoin https://www.bloomberg.com/news/videos/2019-05-28/kenetic-s-chu-sees-bitcoin-at-30-000-by-year-end-video …
Kenetic’s Chu Sees Bitcoin at $30,000 by Year-End
Jehan Chu, co-founder and managing partner at Kenetic, discusses his call on Bitcoin and how it will get to that level. He speaks on “Bloomberg Markets: Asia.” (Source: Bloomberg)
Backing this prediction, the investor looks to the fact that you see Facebook, JP Morgan, Fidelity Investments, and other households names in Silicon Valley and on Wall Street effectively endorsing the technology behind crypto assets by jumping into this space. These developments, in his eyes, will drive “mind share and drive adoption”.
He isn’t the first to have thought so. Speaking to Bloomberg on Tuesday, Sonny Singh of BitPay noted that while 2017’s boom and 2018’s massive downturn was driven by hysteria and “momentum”, Bitcoin’s jump from $3,200 to $8,800 is actually backed by infrastructural developments, like AT&T accepting Bitcoin and E*Trade looking to launch cryptocurrency trading. Singh adds that investors should be bullish on this space, as who knows which big-name in technology or finance will foray next.
Kenetic’s co-founder then points out that Uber and other prominent Silicon Valley IPOs have underperformed, making investors that are more risk-friendly look to assets like Bitcoin, historically seen as non-correlated and an asymmetric play.
And lastly, Chu draws attention to the impending block reward reduction (halving) for Bitcoin, slated to activate in approximately 360 days’ time. It has been suggested that investors are front running this event, as to capitalize early on the effects of the event. As NewsBTC reported previously, analyst PlanB notes that as per his stock to flow model, Bitcoin’s “fair” value after the halving will be at least $55,000.