Bitcoin has recently staged a comeback Breaking a six months old all-time high to hover around the $11,700 price zone. With so many contemplations on how far Bitcoin price can go and the few assertions that this is a bogus price rally, Michael Novogratz, a billionaire investor, and former hedge fund manager has recently said that Bitcoin is going straight to $20,000.
According to him, Bitcoin has a good case to march on to $20,000 unless something goes wrong. The prediction was much influenced by the $2.2 trillion coronavirus stimulus aid package signed by the US government (CARES Act) and the expected $1 trillion HEALS ACT package introduced by the Republicans. In addition, there is another proposal that will see the release of a $3 trillion HEROES Act that will add a lot of value to the current Bitcoin movement.
Novogratz stated that there is a good growth of institutional interest in the cryptocurrency world with Grayscale investment admitting that $1 billion of its total monetary inflow from institutional investments went into cryptocurrency products in the second quarter of 2020. This represents $84% of the total inflow.
Also, with the fair growth of the retail interest of Bitcoin, Novogratz is convinced many stock investors will shift to Bitcoin and gold. When this happens, Bitcoin may trade above $20,000. In fact, he stated that Bitcoin may trade around $14,000 in the next three months before heading to the $20,000 price zone.
Bitcoin has indeed found a place among the various institutional investors in Europe. According to research conducted by the Fidelity Digital Asset, 84% of European institutional investors find cryptocurrency appealing and 72% of US institutional investors do. In addition, 27% of the respondents in the US and 45% of the respondents in Europe admitted to having invested in cryptocurrency with a quarter of them invested in Bitcoin while 11% have invested in Ethereum.
Another part of the research shows a challenge that can slow down the adoption rate and affect the price negatively. 53% of the respondents cited concerns about volatility, and 47% also pointed out market manipulation as an obstacle. Above all, 43% revealed the lack of fundamentals to determine the appropriate value as an issue.
All other things being equal, it is more likely that the Bitcoin price would have done better had the pandemic not crumpled the global economy and caused a market pullback. In fact, the Bitcoin price seems to be recovering from the March crash, and reflecting the massive growth of institutional interest and other positive factors which can send BTC to $20,000.
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