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Saxo Bank analyst predicts Bitcoin at $100,000

The Bitcoin market capitalisation could hit $1.75 trillion in ten years, and its exchange rate might grow to $100,000, Kay Van-Petersen, Saxo Bank global macro strategist, predicts.

According to the analyst, cryptocurrencies, including altcoins, will account for 10% of the average daily volume (ADV) of fiat currency trade by 2027. Given that foreign exchange ADV is now about $5 trillion, cryptocurrencies ADV might account for $500 billion. Bitcoin itself could provide as much as 35% of this volume, or $175 billion of average daily trading volume.

“Volumes are going up, volatility is going down. A lot of people talk about the volatility, but if you are in Zimbabwe or Venezuela, this volatility is nothing. This is the interesting thing to me. I think in the West, a lot of people view it is as speculative, but emerging markets will get it, their needs will be different,” Van-Petersen said in an interview with CNBC.

He believes that the cryptocurrency industry will be pushed by the appearance of easier methods to buy, storage and transfer digital currencies. Van-Petersen admits that this is a rough calculation, but even this prediction could be too "conservative" as within the last four years the Bitcoin price has grown more than 50-fold.

“This is not a fad, cryptocurrencies are here to stay. There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”

Van-Petersan clarified that this is his own personal opinion, and it should not be considered as an official point of view of Saxo Bank.

Last December, Saxo Bank published its annual report, predicting that Bitcoin could hit $2,000 in 2017. That time the cryptocurrency traded around $750 per coin, and Saxo Bank's forecasts were perceived sceptically.

Source: coinfox.info

  • June 1, 2017 11:39 AM MSK
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