On Tuesday (May 28), Jehan Chu, a Co-Founder of Kenetic Capital, “a proprietary trading and investment firm focused on digital assets and blockchain related companies,” explained why he believes that the Bitcoin (BTC) price could reach a new all-time high (ATH) of $30,000 before the end of this year.
As for Kenetic Capital, the company he co-founded with Lawrence Chu, it has three areas of focus: trading; structured products; and venture capital.
Chu’s comments about Bitcoin came during an interview on Tuesday on Bloomberg TV (more specifically, on the “Bloomberg Markets: Asia” show) at a time when BTC was trading around $8,760.
The interview started by Chu being asked how Bitcoin would be able to get to a price of $30,000 before the end of the year.
Chus said that 10 years after the birth of Bitcoin, people are beginning to realize that “cryptocurrency is not going away.” He then began to list three reasons why he believes that the Bitcoin price can reach this level over the next several months:
- Major players such as Facebook, J.P. Morgan, and Fidelity, are already involved in crypto. (This will probably result in their competitors also wanting to get involved so that they don’t get left behind.) Chu says that this is going to “drive mind share and drive adoption.”
- Investors’ disappointment with recent tech IPOs such as Uber and Lyft means that “people are looking for a different type of tech story” and “one that is accessible to all.”
- The upcoming Bitcoin block reward halving (which is estimated to occur around 22 May 2020) has “traditionally pushed the price [up] in double digit percentages.”
Chu was then asked which other cryptocurrencies he could see performing well. He explained why is very bullish on Ether (ETH) and somewhat bullish on XRP:
“From a utility standpoint, we're seeing Ethereum as the lead. The rate of adoption and the rate of development… is just astounding. People keep saying that Ethereum is going away, but it's not going away. It's still one of the largest coins in the world with the largest developer audience.”
“I think Ripple has made great headway in… getting key partnerships around the world.”
Finally, when asked about Bitcoin ETFs, Chu said that he was not expecting one to be listed anytime soon, but that this was not necessary for Bitcoin to continue to gain traction given the three factors he mentioned earlier.
At press time (14:40 UTC on May 29), according to CryptoCompare, Bitcoin is trading at $8,707, up 0.23% in the past 24-hour period: