Bitcoin’s (BTC) parabolic rally is only just getting started, according to Nigel Green, founder and CEO of the Dubai-based financial advisory firm deVere Group.
In an article that was published to Newsmax on Thursday, Green boldly proclaimed that Bitcoin will have another “record-breaking year” in 2021, with prices set to explode by at least 50% and “possibly double.”
He made the prediction just as Bitcoin peaked above $23,000 on Thursday for the first time ever. The flagship digital currency would go on to trade as high as $23,777 on Bitstamp before experiencing a minor pullback.
Based on current values, Green expects BTC to reach between $34,500 and $46,000 at some point next year.
While acknowledging that Bitcoin won’t go up in a straight line, Green says the influx of institutional investors will lead to a groundswell of consumer interest, creating the perfect storm for price discovery.
He wrote:
“Some of the world’s biggest institutions – amongst them multinational payment companies and Wall Street giants – pile ever more into crypto, bringing with them their enormous expertise and capital, this in turn, swells consumer interest.”
Green’s deVere Group has spent quite a bit of time researching digital assets. Last month, the advisory firm released survey results showing that 73% of respondents are bullish towards cryptocurrencies, up from 68% in 2019. This so-called survey of millionaires underscores an important shift underway within smart-money circles.
Institutional demand has been a primary catalyst behind Bitcoin’s bull market and is one of the main reasons why the current uptrend differs markedly from the blow-off top in 2017.
Another major catalyst is the narrative that Bitcoin is a hedge against inflation and macroeconomic uncertainty — something Green touched upon in his article.
He explained:
“[...] with governments continuing to support economies and increase spending due to the pandemic, investors are increasingly going to look to Bitcoin as a hedge against the legitimate inflation concern.”