Hong Fang, the CEO of popular cryptocurrency exchange OKCoin, has revealed she believes it’s “reasonable” for the price of the flagship cryptocurrency to hit $100,000 in the long run, although in the short-term she admitted several market factors influence the cryptocurrency.
Speaking to CNBC, Fang noted that the Bitcoin network has “no protocol risk” and that as long as that is maintained she is “very bullish in the asset itself.” Per her words, determining where the price of BTC will go is hard to determine, especially during this period of heightened market volatility.
The CEO noted that in the short-term leveraged products and derivatives may heavily influence the price of the flagship cryptocurrency while other assets will be “competing for capital within the crypto space.”
Fang concluded that while there are a lot of elements at play, over the long run she sees the $100,000 as achievable with the potential for the cryptocurrency to move even higher. She said:
I still believe that the $100,000 price point is reasonable, but the timing can be a bit elusive because we are at the mercy of market dynamics.
As CryptoGlboe reported, minutes from the Federal Reserve’s last meeting in December showed that officials discussed shrinking the central bank’s swollen $8.3 trillion balance sheet and raising interest rates sooner than expected. The central bank’s hawkish stance could help bitcoin outperform stocks this year.
According to Bloomberg analyst Mike McGlone, who in the January edition of Bloomberg’s Crypto Outlook described the central bank’s plan to raise interest rates this year as a potential “win-win scenario for Bitcoin vs. the stock market.” McGlone noted that the S&P 500 Index is currently the most extended above its 60-month moving average in over two decades.”
Bitcoin Foundation chairman and billionaire investor Brock Pierce has said that one catalyst could take Bitcoin’s price to $200,000 this year. Per Pierce, he is mostly focused on external influences shaping the price of BTC and added financial uncertainty in the global financial system could be a “primary driver” for the currency.
The co-founder of cryptocurrency lending platform Nexo, as reported, has predicted the price of BTC will hit $100,000 by mid-2022 due to the influence of institutional treasuries and an influx of cheap money by the Fed.
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