The head of the Swiss cryptocurrency bank SEBA, Guido Bühler, said at the Crypto Finance conference that the value of Bitcoin could almost double this year, reaching the USD 75,000 mark, as digital assets attract more and more institutional investors: banks, insurance companies and pension funds.
After Bitcoin rose to a record $ 69,000 in November, Bitcoin’s value has largely declined in the past two months, with it briefly dipping below the $ 40,000 mark last Monday, hitting the minimum seen in September . When asked if Bitcoin can return to its previous record levels, Mr Buyler replied in the affirmative, but emphasized that the asset’s volatility is still high. According to internal estimates by the company, the world’s largest cryptocurrency will hit $ 75,000 – it’s just a matter of time.
The loss in value of Bitcoin followed a certain destabilization of the American financial market: since the beginning of 2022, the yield on 10-year US government bonds has risen sharply and investors have switched to less risky investments. However, unlike many stocks, Bitcoin retains a high level of liquidity, which allows it to withstand pressure from traders without any irreversible processes.
Buyler believes the same institutional investors will ultimately see Bitcoin grow in value through 2022. Other experts agree with him. Pascal Gauthier, head of the crypto hardware wallet company Ledger, believes that such investors are increasingly trusting cryptocurrencies. And California venture capitalist Bill Tai generally believes what is happening to Bitcoin now is just another wave of its natural fluctuations: “I don’t know when it will grow back, but it will grow again.”… And he added that the world’s largest cryptocurrency is now recognized by institutional investors.