Bitcoin is valued at around $40.000, amid research showing hedge funds’ growing interest in cryptocurrencies and the statement by billionaire businessman Tim Draper that he insists on predicting that bitcoin will reach $250.000 by the end of the year 2022 or early 2023.
Bitcoin, whose price climbed above $40,000 last night after the positive statements of Elon Musk at the weekend, is moving around this limit.
“Bitcoin is moving to its highest level since May, recovering significantly, but it should break convincingly – and most importantly close above – the $41.000 mark,” said a cryptocurrency analyst at investment platform eToro. “We saw the price resist this level earlier this year, when it was at its all-time high, and I would really like to see a stronger increase to be optimistic about the price recovery and a possible rise to $50.000 and above”, he added.
A Financial Times article reported that hedge funds plan to increase their exposure to cryptocurrencies by 2026, citing an Intertrust survey. The FT noted that this was a “major vote of confidence in digital assets following the recent sharp price cuts and plans for punitive new capital rules”. According to a proposal from the Bank for International Settlements (BIS), banks holding cryptocurrencies should keep corresponding amounts in funds.
The survey was conducted among 100 hedge fund executives worldwide and showed that they expected to keep an average of 7.2% of their assets in cryptocurrencies after five years. If this finding were to be reduced to the industry as a whole, it would amount to $312 billion.
The report also said that “the growing enthusiasm of hedge funds is in stark contrast to the broader scepticism among the more traditional asset managers, many of whom are still concerned about the huge fluctuations in cryptocurrencies and the uncertainty surrounding them“.
Naeem Aslam, chief market analyst at Ava Trade, said “Investors need to keep a close eye on bitcoin’s performance as stockbrokers finally have an optimistic outlook.” “Bitcoin optimists are trying to regain control and the hope is that we will eventually see the price of bitcoin move to the $50.000 mark. We really believe that in the coming days we will hear from miners that most of the energy used for mining is clean energy. Such a development is very likely to be the next catalyst for bitcoin to start its next rally”.