Bitcoin will hit $ 500,000 in 2027, this billionaire is confident

The price of bitcoin is currently falling. Despite this bear market, many voices are rising to predict a cryptocurrency price explosion in the years to come. A famous investor even expects Bitcoin to hit $ 500,000 by 2027.

After the bullish rally that began in late 2020, Bitcoin’s price has gradually contracted. The cryptocurrency passed briefly less than $ 20,000, unheard of for 18 months. The collapse of the UST stablecoin, the failure of Celsius and the Voyager Digital platform contributed to the sharp decline in the digital asset market. Mirroring Bitcoin, most cryptocurrencies are in fact displayed in red.

© CoinMarketCap

Faced with this sluggish market, some observers fear the worst. This is the case of Russell Thomson, CEO of the digital asset management firm LibertyRoad Capital. More recently, industry expert Kevin O’Leary agrees, stating that Bitcoin could very well drop below $ 13,000. Some cryptocurrency holders are even more pessimistic. According to an MLIV Pulse survey, 60% of investors expect Bitcoin to plummet by around $ 10,000 in the near future.

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Towards a Bitcoin Price Explosion?

Despite the trepidation, a plethora of investors continue to firmly believe in the future of cryptocurrencies. This is for example the case with Mike Novogratzthe billionaire behind the investment fund Digital galaxy. According to him, the price of Bitcoin is expected to reach $ 500,000 within 5 years, or by 2027. To achieve this, the currency must rise by more than 600% from the record of $ 69,000 it reached last November.

Asked by the Kitco site during the Bloomberg Crypto Summit, the famous investor estimated that the progressive adoption of cryptocurrencies the price of digital currency will inevitably increase. Above all, it highlights the growing interest of institutional investors in the sector.

“We continue to see institutions … that have not yet been involved, that see this as an opportunity. Institutions are not diving with both feet at the moment because the people who work in the institutions are a little more cautious “says Mike Novogratz, ensuring that institutions will revert to cryptocurrencies as soon as the market resumes rising.

Since 2020, a myriad of institutional investors have entered the world of cryptocurrencies. These include the Commonwealth Bank of Australia, Australia’s largest bank, Goldman Sachs, a popular American investment bank, and pension funds such as the Queensland Investment Corporation. According to a study by investment bank JP Morgan, institutional investors have abandoned goldthe safe haven par excellence, in favor of Bitcoin in 2021. A report by the Dutch management firm Intertrust Group even estimates that investment funds will allocate 7.2% of their portfolio to cryptocurrencies within 5 years.

Mirroring many ecosystem proponents, he claims that Bitcoin will eventually establish itself as a bulwark against inflation fiduciary currencies (dollar, euro, etc.). According to him, Bitcoin, true digital gold, is tailored to be an anti-inflation store of value “. For the time being, the cryptocurrency queen still remains correlated with stock market equities, particularly the tech stocks traded on Wall Street.

Mike Novogratz is not the only investor to show unfailing optimism. Bill Millera famous American investor and fund manager, he also converted half of his fortune into Bitcoin in anticipation of the future price increase.

Source:

Kitco

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