Nigel Green, CEO of deVere made his comments as Bitcoin - the world’s largest cryptocurrency - has lingered around this mark for several days, before jumping up earlier this week.
“Looking at its performance this year, I believe that the new normal bottom price for Bitcoin is US$10,000,” Green said.
“It bounces at this price. If it fluctuates below this level, it shoots back up again. We have seen this in action on Monday when Bitcoin hit US$10,500 in a matter of minutes.”
“First, geopolitical issues, such as the US-China trade war and Brexit, are intensifying and investors will increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin, to shield them from the turmoil taking place in traditional markets.
“Second, technical network improvements are further improving performance. Bitcoin’s hash rate has smashed through another new all-time high recently and this fuels investor confidence.
“Third, the 2020 Bitcoin halving will help drive the price skywards. The code for mining Bitcoin halves around every four years and the next one is set for May 2020. When the code halves, miners receive 50 percent fewer coins every few minutes. History shows that there is typically a considerable Bitcoin surge resulting from halving events.
“And fourth – and perhaps the most important one – is that public awareness is consistently growing. Cryptocurrencies, and in particular Bitcoin, are increasingly part of mainstream finance. This is evidenced not only in the financial sector, in which all major banks are increasingly looking at blockchain and crypto, but with big names within the tech and retail sectors too.”
“There is increasing global acceptance that cryptocurrencies, such as Bitcoin, are not only the future of money, but increasingly the money of today. This will be reflected in Bitcoin’s new normal bottom price of US$10,000,” Green concluded.