Two prominent investors in the cryptocurrency sector have continuously called for a price target of $20,000 for Bitcoin since early 2018.
Fundstrat’s Tom Lee and RT host Max Keiser reaffirmed their optimistic stance on the short to mid-term trend of Bitcoin, as the dominant cryptocurrency broke out of a major resistance level at $7,000 on September 1.
Max Keiser Says $28,000 Bitcoin is Still in Play
Throughout the bear market during which Bitcoin fell by more than 60 percent and other major cryptocurrencies recorded 90 percent losses, Tom Lee and Max Keiser have consistently demonstrated positivity in a gloomy market.
Today, after a month of stability in the $6,500 to $7,000 range, Bitcoin has surpassed the $7,200 resistance level, bringing other cryptocurrencies in the market with it. Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, and every other major cryptocurrency recorded a decent gain in the past 24 hours.
The daily trading volume of the cryptocurrency market has also comfortably surpassed the $13 billion mark, which was in the $8 billion region up until last week.
Tokens like WanChain, ICON, Aelf, and Digibyte have seen 5 to 10 percent gains against BTC, which also increased by 3 percent after re-establishing momentum in the lower price range.
Subsequent to the unforeseen short-term corrective rally of Bitcoin, Keiser stated that his $28,000 price target for BTC by the end of 2018 is still highly likely, especially if institutional investors commit to the market through trusted custodian solutions.
$28,000 still in play. #Bitcoin
— Max Keiser (@maxkeiser) September 1, 2018
In an interview with Fores, Jonathan Hamel of Acadamie Bitcoin in Montreal previously said that the rejection of ten Bitcoin exchange-traded funds (ETFs) over the past two months is of little importance because companies like Coinbase and Bakkt have been allocating most of their resources in facilitating the growing demand from institutional investors.
“I don’t think (the rejections) are that important. The ‘physical’ over-the-counter/institutional bitcoin infrastructure is only getting started. The development of financial vehicles backed by bitcoin is inevitable. It’s not if, it’s when,” Hamel said.
Tom Lee has maintained a same stance as Hamel, alluding to the significant progress that is currently being made in the institutional and OTC cryptocurrency market by market leaders.
$20,000 by 2018
Similarly, speaking to NewsBTC, multi-asset brokerage eToro with more than eight million active users said that there exists many alternatives for an ETF such as the XBT Provider exchange-traded note (ETN) which recently debuted in US markets.
As such, throughout 2018, the adoption of custodian solutions and publicly tradable instruments that already exist in the global market could potentially drive the price of BTC up to its previous all-time high.
“There are many existing alternatives for an ETF, I think having institutional demand flow through those is as important. ETF is simply a regulatory signal from the SEC it’s a valid asset class,” Assia explained.
Given the positives in the institutional side of the cryptocurrency market as well as optimistic developments in South Korea and Japan pertaining to regulatory frameworks around cryptocurrencies, investors perceive Bitcoin recovering back to its all-time high relatively soon, possibly by the end of 2018.