During an interview with Bloomberg, he noted that tailwinds have been developing for the cryptocurrency this year with the dollar not strengthening and China rallying. “That’s bullish for crypto because the correlation is so high.”
He continued: “We’ve had evidence that the so-called whales, the original holders of crypto, are starting to accumulate again. A lot of them sold in early 2018, that’s dry powder, they are starting to put that to work.”
There is reason to believe that the jump we saw on 1st April was not short covering, it was real money being put to work, he added.
Similar views were expressed this week by Nigel Green, Founder and Chief Executive of financial advisory organisation deVere Group.
“I’m now calling that the market has bottomed and the so-called crypto winter has come to an end,” he said. “I believe it will now move higher over the next few weeks and months, making steady gains for investors. As the largest cryptocurrency by market cap, this will have a positive impact on prices in the wider crypto sector.”
The aforementioned jump will attract many investors who have been sitting on the sidelines, he believes. And it will also reignite institutional interest.
He added that the crypto space is on the verge of a “true global breakout..Adoption is increasing all the time. This is evidenced not only in the financial sector, in which major banks are increasingly looking at blockchain and crypto, but with big names within the tech and retail sectors too.”
“There is increasing acceptance that cryptocurrencies are inevitably the future of money, and the environment is now right for a sustained climb in prices. I think we could reasonably see the Bitcoin price hitting $7,000 in the next few months,” he concluded.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.