In the wake of bitcoin’s (CCC:BTC) over-the-weekend pullback from the stratospheric $40,000 threshold, experts are busy with their latest prognostications on the cryptocurrency.
The largest cryptocurrency by market value slumped to a 24-hour low below $31,000, after hitting record highs above $41,800 on Friday.
CoinDesk noted that bitcoin is trading in the opposite direction to the dollar, a reflection of the “cryptocurrency’s maturation as a macro asset like gold.” A rise in U.S. Treasury yields seems to be fueling the greenback’s appreciation.
Bitcoin Price Predictions: Analysts Raise Concerns
The recent rally sparked concerns among several key analysts, worried that the cryptocurrency may be in bubble territory. Bank of America Chief Investment Strategist Michael Harnett last week offered that bitcoin could be in “the mother of all bubbles.” In fact, he advised clients that the recent rally, with the “cryptocurrency market now >$1tn as Bitcoin past 2 years, blows-the-doors-off prior bubbles.”
David Rosenberg, chief economist and strategist at Rosenberg Research, was railing about a bubble last month, calling bitcoin “just a classic, follow-the-herd, extremely crowded trade.” He was soon followed by Nouriel Roubini, chairman of Roubini Macro Associates and a professor of economics at New York University, who said, “it doesn’t have any fundamental value. We’re close to the point where the hyperbolic bubble is going to go bust.”
However, not all experts are using the recent plunge to issue negative bitcoin price predictions. In fact, InvestorPlace analyst Matt McCall last week wrote that he is “exceptionally bullish on bitcoin, altcoins (cryptocurrencies other than bitcoin), and the blockchain technology on which they are built.”
“In fact, I see bitcoin even hitting $100,000 sometime here in 2021. That would be another 155% from current prices. If that sounds crazy, consider that it took just three weeks for it to double from $20,000 to $40,000,” he wrote on Jan. 9.
McCall’s prediction came just a few days after InvestorPlace Markets Analyst Thomas Yeung wrote that “It’s not too late … if you’re willing to speculate. Bitcoin is a surprisingly ‘risk-on’ asset that goes up when confidence is high. And with few roadblocks in the way of economic recovery, Bitcoin’s run looks set to continue, at least in the near term.”
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.