Bitcoin Price May Reach $30K by Year's End, Says Fund Manager
In an interview, Jehan Chu explains why he thinks that the Bitcoin bull market is far from over.
Since the beginning of the year, Bitcoin has seen some forward movement in comparison to the sluggish performance it had in the last year. Jehan Chu, co-founder of Kenetic, told Bloomberg in an interview that this movement is far from over for three key reasons.
Jehan said that he believes that Bitcoin could easily reach a value of $30 thousand per unit by the conclusion of 2019.
“I think, ten years out from the Bitcoin story, we’re starting to see a story become reality. And what people are really seeing now is that cryptocurrency is not going away… It’s Facebook, Jamie Dimon [...] all who are getting in the space either in building infrastructure or providing services. So that’s first,” he said.
While it’s difficult to tell just how much of Bitcoin’s value is drawn from adoption as opposed to the optimism of traders speculating on the market, there’s a different story to tell now in comparison to a few years ago.
Adoption is getting simpler for the average person, with companies like VISA establishing partnerships with Coinbase to create debit cards that allow individuals to make purchases in fiat that are automatically converted from their cryptocurrency wallets.
“Second, I think what we’re seeing is a countercyclical argument with the recent disappointments of Uber and Lyft IPO-ing in the market. People are looking for a different type of tech story, and one that’s perhaps accessible to all,” Jehan added.
The development of the space and the potential for cryptocurrencies to achieve universality in at least some applications might entice some people, but the one question remains unanswered: How much of Bitcoin’s forward momentum comes from an increase in adoption?
According to a chart by Blockchain.com, the amount of wallet users has grown this year by nearly 7 million, with a marked increase between April and May, demonstrating that there’s a slight uptick in adoption.
However, Jehan points out another important factor that influences Bitcoin’s price.
“Finally, the Bitcoin halving is coming and traditionally, that’s pushed the price a double-digit percentage. A combination of these three factors will really see us getting from where we are now to 30 thousand,” he said.