Bitcoin (BTC) has been smashing new highs and currently making its way towards the $40,000 mark. After jumping more 100% percent over the past month, the flagship cryptocurrency has changed the market tune, with several major investors making some giant price predictions for 2021. Billionaire venture capitalist Chamath Palihapitiya is the latest when it comes to this, predicting that Bitcoin is on its way to $200,000.
Speaking at a CNBC interview, the Social Capital founder asserted that Bitcoin is on its way to new highs as more people realize what the crypto coin offers during this time of political and economical instability. He reflected on his past experience talking Bitcoin on CNBC, stating:
â€œCan you play the clip in 2012 and 2013 when it was at $200 and everybody was laughing at me on CNBC every time I would talk about Bitcoin?
Where is it going? Itâ€™s probably going to $100,000, then $150,000 then $200,000.â€
Palihapitiya adds that BTCâ€™s properties as a scarce asset thatâ€™s largely uncorrelated with the macroeconomy will be the primary driving factor behind its meteoric rise amidst economically uncertain times, even though he didnâ€™t talk about when he expects BTC to hit this level.
â€œIn what period? I donâ€™t know â€“ five years, ten years, but itâ€™s going there, and the reason is because every time you see all of this stuff happening, it just reminds you thatâ€¦ our leaders are not as trustworthy and reliable as they used to be. And so just in case, we really do need to have some kind of insurance we can keep under our pillow that gives us some access to an uncorrelated hedge.â€
The venture capitalist and also the chairman of the Virgin Galactic board noted that he purchased 1 million Bitcoin when the cryptocurrency was worth just $80. He hasnâ€™t confirmed if he still owns the BTC, but those Bitcoins would be worth more than $38 billion at current prices.
Bitcoin wonâ€™t stop as markets remain Bullish
And itâ€™s not just Palihapitiya whoâ€™s betting big on BTC. As previouslyÂ reportedÂ by The Daily Chain, JPMorgan, the largest U.S bank expects the worldâ€™s number one cryptocurrency to hit a long term target of $146,000.
At the time of writing, BTC continues its bull run and is trading just below the $40,000 mark. The coin is up more than 114% over the past month and more than 350% over the past year. For now, the cryptocurrency has shown no signs of slowing down and it looks like bulls remain in control.