Florian Grummes, managing director of financial consultancy firm Midas Touch Consulting, has revealed he is “pretty sure” the price of bitcoin is set to hit $100,000 in the near future while maintaining a price target he set in August.
During an interview with Kitco News, Grummes noted that it’s currently a challenge to make bitcoin price predictions, but maintained his $100,000 prediction made in August. At the time, Grummes warned the cryptocurrency would undergo a period that could see it drop to a $25,000 low before it recovered.
As Finbold reports, Grummes noted the market is currently in a state of panic that will see the price of bitcoin rise as soon as it is over. The market, he said, is in a state of panic because of China’s recent all-out cryptocurrency crackdown that saw the People’s Bank of China declare all cryptocurrency transactions illegal.
Grummes cited central back activity as one of the potential catalysts that will take BTC to six-figure territory, as he believes central bankers panicking will “expand their balance sheets even more dramatically.” He added:
I think for everybody inflation is unstoppable now and you have to run with everything you have into hard assets, and it just means precious metals. Once this correction is over in Bitcoin, I’m pretty sure we’re going to see $100,000.
Per the director, once people notice central banks are becoming a financial risk, they may run to bitcoin, which could drive the cryptocurrency’s price higher.
In August, Grummes added that if BTC managed to hit the $100,000 mark, he expected the cryptocurrency to enter a historical trend in which it may potentially surge even more as investors try to gain exposure to the cryptocurrency. It may, however, also experience sell-offs of up to 70%. By then, bitcoin’s volatility should be significantly smaller than what it is now, he suggested.
Addressing the potential motives behind China’s ban, the director said he believes the Chinese government is cracking down on money flowing out of the country, noting the government is trying to fully control its financial sector.
As CryptoGlobe reported Bobby Lee, a cryptocurrency industry veteran who co-founded the BTCC exchange and is the brother of Litecoin creator Charlie Lee, has revealed during an interview he expects bitcoin to see a rally driven by fear of missing out (FOMO) by the end of the year that will take its price above the $100,000 mark.
Adam Back, the CEO of blockchain technology firm Blockstream and the third person to ever own bitcoin, has also suggested that BTC hitting $100,000 this year is “quite possible,” before saying that in the long run hitting the $500,000 mark is “feasible.”
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