Jan Van Eck, the Chief Executive Officer of the leading asset management firm VanEck, has estimated Bitcoin price to hit $300,000.
He referred to this target as a ‘reasonable, base assumption,’ meaning that though Bitcoin is often compared to gold, it could reach a value of half of gold’s market capitalization.
However, Van Eck pointed out that the figure estimated is conservative, while some maximalists may expect even more significant rates.
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This projection emerges at a time when Bitcoin has been widely recognized as an international means of value storage and as a hedge currency.
Trends indicate that there is rising interest in the digital currency, especially from institutional investors.
The CEO also pointed out that this increasing trend is supported by a $1.37 billion single-day trading volume of Bitcoin financial products.
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Investor Demand and Institutional Traction
The increase in Bitcoin price has been attributed to an increase in adoption from retail investors and institutional investors following the approval of Spot Bitcoin ETF in the United States.
Van Eck pointed out that the interest has shifted toward Bitcoin ETFs as investors consider more conventional ways.
However, Van Eck also noted that the increased demand has sunk its roots almost in every facet of culture and economics.
He used instances such as Donald Trump’s presence at a Bitcoin conference and even discussions on digital assets in the Ohio Senate race as part of the growing mainstream adoption of Bitcoin.
According to Van Eck, these factors together with high demand for ETFs support Bitcoin’s future advancement.
Ethereum Gains Attention as Alternative to Bitcoin
In addition, Van Eck also pointed to Ethereum as an important asset. Especially for those who go beyond the provision of Bitcoin just as a means of payment.
He suggested that Ethereum could leverage the increasing usage of stablecoins. The reason is they will take a key role in cross-border payments.
This trend reflects Ethereum’s smart contract capabilities as stablecoins are often developed on Ethereum’s blockchain.
Van Eck also agrees that Ethereum price has been volatile. However, he says this makes it a better opportunity for investors to get in the market. Ethereum has managed to recover and is now trading above $3,000.
However, as Ethereum moves up the ranks, some analysts have gone ahead to caution the market. In particular, Peter Brandt, an experienced trader, recently decided to play a jester after the price climbed above $3,000 on the ETH.
In a Tweet, Brandt subtly suggested that his recent position could be detrimental to Ethereum. It could hint at a reversal in ETH.
Ethereum Outpacing Bitcoin?
Brandt’s comment comes at a time when Ethereum has shown remarkable performance with latest stats revealing that ETH is outpacing Bitcoin in daily and weekly performance.
Specifically, Brandt referred to a technical pattern referred to as the inverted head and shoulders formation. The patters often signals a trend reversal. Nonetheless, the recent surge in Ethereum prices suggests that investors remain interested in the altcoin.
At press time, Ethereum (ETH) was trading at $3,140.19, marking a 6.07% increase over the last 24 hours. Its market cap has risen to $378.15 billion, with a 24-hour trading volume of $28.07 billion.
