Cryptocurrency investment expert: Institutional investors will push Bitcoin prices to extremely high levels

According to a Forkast report on December 2, as the price of Bitcoin breaks through a new high, will its bull market end soon? Through the following, you will know why investment experts like Trent Barnes of Zerocap believe that Bitcoin will have more room for development.

Zerocap, a Melbourne-based digital asset investment and custody service company, published a report titled “Bitcoin: A Hedge Investment Product” at the end of the third quarter of this year. At that time, the price of Bitcoin had risen to More than 10,000 US dollars. Zerocap has recommended:You haven’t missed the opportunity to get on the bus. It is time to follow the wave of change and invest in Bitcoin.

Now, the price of Bitcoin has not only rebounded from the slight decline last week, but also hit a record high of $19,749. Since its birth in 2009, Bitcoin has not only approached $20,000 again, but its market value has surpassed the world’s largest traditional bank and Wall Street pillar JPMorgan Chase.

Trent Barnes, head of Zerocap, told Forkast in a recent video interview:We know that as long as the market and market participants continue to be optimistic about Bitcoin, its price will continue to rise. We are not only recognized by retail investors, but also recognized by institutional investors.

Since the outbreak of the new crown virus at the beginning of this year hit the global economy, the price of Bitcoin has dropped to a trough. In May of this year, after experiencing the “halving” time that marked the decline in the rate of newly mined bitcoins in the future, the price of bitcoin continued to improve, and continued with the huge growth of decentralized finance (DeFi) this year rise.

Last month, the market value of Bitcoin surpassed JPMorgan. This week, the price of Bitcoin set the highest record since the ICO boom in 2017.

In 2017, the price of Bitcoin plummeted after reaching a high point, and the market became the graveyard of start-ups, which were either excessive speculation or scams. But that is a thing of the past. The Bitcoin bull market in 2020 is driven by completely different forces. Now, more and more institutional investors and large companies are buying Bitcoin to hedge the inflation risk of their investment portfolios.

Barnes said:I think the Fed’s printing volume this year is three times that of the 2008 global financial crisis. So this has really increased the curiosity of many of our customers about Bitcoin.

As 2020 draws to a close, institutional investors who plan to buy bitcoin also include global investment company Guggenheim Partners. The company disclosed in a document recently submitted to the U.S. Securities and Exchange Commission (SEC) that it plans to use up to 10% of the Macro Opportunity Fund (about $500 million) to invest in Bitcoin. Software company Microstrategy also recently revealed that it has also invested more than $400 million in Bitcoin. Other well-known companies that have joined the Bitcoin investment army include PayPal, Twitter CEO Jack Dorsey’s Square, and hedge fund manager Paul Tudor Jones.

Barnes said:You will see many different companies convert their cash reserves or cash balances into Bitcoin because I think this is a safer hedge.

Barnes did not speculate on the future price trend of Bitcoin. But he believes that institutional investors and financial advisers from high-net-worth families will continue to have a strong interest in Bitcoin until 2021. He said:We know that as long as the market and market participants continue to be so optimistic about it, it will rise.

The following is the essence of Barne’s interview:

  • How this year’s Bitcoin bull market is different from 2017: “ What we see is that Bitcoin has become a verified asset, especially due to institutional capital inflows and institutional protection. Therefore, we will definitely see investors And the customer community’s curiosity about Bitcoin has greatly increased, and I’m pretty sure of this. This is even more obvious than the 2017 ICO boom.”
  • Bitcoin as an inflation hedging tool: “When we talk about Bitcoin as an inflation hedging tool or a safe-haven asset, we see that in a period of liquidity crunch, all markets and all assets will fall because of unprecedented uncertainty in the market. Especially if investors want to call margin.”
  • When is the right time to invest in Bitcoin: “It has always been the right time to invest in Bitcoin. If you ask any early adopters, they see a programmatic money supply schedule. The last Bitcoin will be in 2140. It was dug out. So the circulation of Bitcoin is predictable. It has no borders and no licenses. I think Obama called it “going around with Swiss bank accounts.” “It’s more like a Swiss bank, you are The CEO, the cashier and the manager are all three in one. “
  • How DeFi pushed you to invest in Ethereum: “What we have noticed is that it is almost like in a bubble. The Yield Farming boom begins to emerge in the boom phase of DeFI. You need to invest a lot of time and energy. So that’s why We use Ethereum as one of our investment assets. You can indeed buy various DeFi tokens, but if you can really see the essence, you should understand what foundation these projects are built on? Ethereum As an agreement, most of the DeF projects are actually based on it.”
  • What percentage of people invest in Bitcoin? “Some investors like to set a high proportion of Bitcoin investment. I have a few friends who have 50% of their investment portfolios in Bitcoin. This is really high. But many investors tend to invest 1% of their assets. % To 5% to invest in Bitcoin. This is because of its risk asymmetry. This means that a very small investment may bring very small losses or extremely high returns, especially when you look at The historical price curve of Bitcoin.”

Source: Babit Finance

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