Even though its current price is trading just below $50,000 as of late, pundits of the leading cryptocurrency feel that it has the potential to hit $100,000 by mid-2022.
Despite its latest stumble, bitcoin and cryptocurrencies in general finished 2021 on a positive note. Bitcoin itself gained 60% to finish the year with increased institutional investment, especially after the introduction of a bitcoin futures exchange traded fund (ETF) in the U.S.
“I think [bitcoin’s] going to reach $100,000 this year, probably by … the middle of it,” said Antoni Trenchev, co-founder and managing partner at Nexo, a cryptocurrency lending platform.
Trenchev’s prediction is further supplemented by the Goldman Sachs Group, which also sees the $100,000 price within the realm of possibilities, usurping market share from its tangible asset rival, gold.
“Bitcoin will continue to take market share from gold as part of broader adoption of digital assets, making the often touted price prediction of a $100,000 by advocates a possibility, according to Goldman Sachs Group,” Bloomberg reports. “Goldman estimates that Bitcoin’s float-adjusted market capitalization is just under $700 billion. That accounts for 20% share of the “store of value” market which it said is comprised of Bitcoin and gold. The value of gold that’s available for investment is estimated at $2.6 trillion.”
Bitcoin continued to assert itself in 2021 as a digital store of value or “digital gold.” According to Goldman’s numbers, it now comprises 20% of the store of value market.
“Goldman estimates that Bitcoin’s float-adjusted market capitalization is just under $700 billion,” Bloomberg adds. “That accounts for 20% share of the ‘store of value’ market which it said is comprised of Bitcoin and gold.”
Getting Alternate Bitcoin Exposure
Bitcoin’s recent fall from its all-time high allows bitcoin futures-focused ETFs to buy the dip. That said, investors who want to bet on future bullishness in the leading cryptocurrency will want to look at the ProShares Bitcoin ETF (BITO ).
As opposed to directly investing in the cryptocurrency itself, another way to get alternate exposure to bitcoin is to play its future price increases. As such, ETF investors may want to play on this bullish notion with Proshares’ BITO.
Investors who can’t stomach the volatility that’s hit bitcoin as of late but still want alternative asset exposure to the leading cryptocurrency may want to give the fund a closer look. Additionally, bitcoin’s price of close to $50,000 may not fit everyone’s budget, but BITO can provide alternate exposure at a lower price of entry.
For more news, information, and strategy, visit the Crypto Channel.
