The world’s largest digital currency is in the midst of an exuberant rally that this week saw it cross above $18,800 for the first time in almost three years.
Strategists and crypto fans alike are now rushing to project its next never-before-seen heights. Outside of the eternal to the ‘moon’ pronouncements from Twitter pundits, forecasts vary from $25,000 to more than $300,000 by the end of next year.
Here’s what’s aided Bitcoin’s run a warmer embrace from the likes of Fidelity Investments and JPMorgan Chase & Co. is often cited as a catalyst, as is a decision by PayPal Holdings Inc. to allow its customers access to cryptocurrencies. Then there is always the fear of missing out, as prices plunge higher. For crypto preachers, these developments are just the first moments on the road to ubiquitousness.
“You suddenly have this nearly perfect backdrop that is not only lending validity to the asset class, but is also really demonstrating its staying power,” said Michael Sonnenshein, managing director at Grayscale Investments, which operates the largest exchange-traded crypto trust. It’s “once again showing investors no matter how many times it gets challenged, that it has a way of emerging almost stronger or demonstrating its ability to be resilient.”
The rise in forecasts has observers warning that the volatility that has been a hallmark of Bitcoin since its debut more than a decade ago is likely to return.