A famous Tesla investor has proposed a $1-5 Trillion market cap for Bitcoin in the next five to ten years. His speculation about Tesla’s price also became true.
Arik Invest’s Analysis
Since the start of 2020, Bitcoin is up 40%, which is a big achievement. However, its price dropped by half value in March, but then it jumped over $10,000. Yassine Elmandjra, director of research at Ark Invest, believes that Bitcoin could attain a market cap between $1 trillion to $5 trillion in the next 5-10 years. According to Elmandjra’s analysis, it could jump from “$200 billion today to $1-5 trillion network capitalization during the next five to ten years.”
Arik Invest made a bullish prediction for Tesla’s price value, which had become true as the price of the company’s shares increased many folds.
According to many experts, Bitcoin is the best performing asset in the global markets over the recent decade as the price value of Bitcoin jumped from zero to $20,000, witnessed in 2017. And at the start of 2020, the price was standing at $7,000, but now it is trading above $10,500.
Big players and institutions are also favoring Bitcoin as a big Institutional influx is noticed this year. This is because they are seeking a potential hedge against banking policies that have only printed more money during Coronavirus.
Risks in Bitcoin’s Bull Run
On the other hand, Elmandjra also mentioned some risks involved in it that would disrupt Bitcoin’s bullish pace. Still, there is regulatory uncertainty about Bitcoin, and the future is also uncertain. Some dominant institutions that have a large amount of BTC holdings will be able to control the price value, which he termed as “over-institutionalization.” Ark has been a strong supporter since the start of this year as it stated Bitcoin is a “contender for the first global digital money.”
At press time, Bitcoin is trading at $10,593 with a slight positive change in the past 24-hours. As per crypto analysts, the level of $10,500 is very crucial, and it can perform as a support level.