After experiencing a tremendous market lull which saw the currency stoop to the $5,800 mark, Bitcoin experienced an unexpected value surge late Friday, bringing up the price of a single coin to $6400.
While there appear to be no sure-shot signs as to why this latest surge happened, many market analysts believe that the hike can be attributed to a host of reasons including news of institutional investment trickling in from established players such as Circle and Andreessen Horowitz.
Additionally, even though a lot of people continue to remain uncertain regarding the direction in which Bitcoin seems to be heading in, BitMax CEO Arthur Hayes believes that the crypto powerhouse “will scale up to 50,000 by the end of this year”.
Why is Hayes so bullish on BTC?
Hayes is a former traditional assets trader and Wharton graduate who in the recent past has become a regular fixture of the US crypto scene.
Appearing on a CNBC a couple of days back, Hayes stated that:
“Well, I think that something that goes up to $20,000 in one year can have a correction down to around $6,000.”
He then went on to say that
“In 2013 to 2015, we went for $1,200 to $200. In 2015 to 2017, (we went from) $200 To $20,000. So, we’ve done these sort of moves before. I think the time span is going to shorten because you have many more people involved in the market, who have invested capital and resources to trade this asset class”
Closing Thoughts
Historically speaking, predictions like the one made by Hayes have not always turned out to be true. A few weeks back, Fundstrat Co-Founder Tom Lee also made bold claims regarding the value of BTC following the annual Consensus summit. However, those predictions were quite off and did not come to fruition.
With the market closing on a good note, many investors once again seem to be optimistic about the future— especially after the SEC put forth a new approval process for Certain ETFs.
Image courtesy of Shutterstock.com
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