CoinShares CSO expects Bitcoin to hit new all-time high
Before that, there is still a valley to overcome
CoinShares itself remains cautious for the time being
After record highs were achieved in November 2021, the prices of numerous cryptocurrencies have literally collapsed in the current year. In June 2022, for example, bitcoin, the world’s most popular cyber currency, fell below the $20,000 mark for the first time since November 2020, losing a full 70 percent of its all-time high.
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Many market participants are already talking about an impending crypto winter, in which prices will continue to plummet and will not fully recover from this for years to come. The last time such a winter started was in 2017/18. At that time, for example, Bitcoin collapsed by 80 percent and took years to reach the old highs again because many investors lost interest in digital assets.
Crypto expert optimistic
But Meltem Demirors, Chief Strategy Officer at CoinShares, Europe’s largest manager for digital assets, already sees a silver lining on the horizon: “By 2024 that will only be a distant memory,” she comforts the currently suffering crypto investors. She even predicted optimistically in the CNBC show Squawk Box: “In the next 24 months we will see a new record high for bitcoin”.
However, patience is required on the part of investors, as a dry spell must first be overcome before the market-leading cryptocurrency climbs to a new all-time high, as forecast by Demirors. Because the CoinShares chief strategist still sees “no short-term upward catalysts”.
“For us at @CoinSharesCo the view is we are going to stay where we are for a while. There are no near term upside catalysts. We have yet to see #bitcoin in a #recession,” says @Melt_Dem. “Certainly expect more pain ahead for tech stocks, growth and also #crypto.” pic.twitter.com/3dQ7ke9tA5
– Squawk Box (@SquawkCNBC) July 11, 2022
“Bitcoin has always been a cyclical asset with falls of up to 80 or even 90 percent” compared to the respective highs, the expert explained. However, with the price drop to around 20,000 US dollars, the “cyclical financial product” only posted a minus of around 65 percent compared to the record high of November 2021. Demirors therefore sees “still room for improvement”. But at least the support at 20,000 US dollars offers a strong backing in their opinion. Even if the decline goes deeper, she doesn’t expect a drop below $14,000.
For the crypto sector as a whole, the CoinShares chief strategist expects a cleansing process: “There are a lot of cryptocurrencies that I think will go to zero because they have no real added value in the long term, as we have seen before with many tech companies to have.”
Reluctance on CoinShares
“We’re approaching a recession, or maybe we’re already there,” Demirors said in a CNBC interview. Against this background, CoinShares remains cautious about further Bitcoin investments: “We at CoinShares want to stay where we are for a while. [] We have yet to see how bitcoin behaves during a recession. Are we already in a recession? We don’t know, but given what’s in the euro zonearound the world and also here in the United States where the Fed is raising rates and curbing open market activities, we anticipate more pain for tech stocks, growth and crypto as well.”
Editorial office finanzen.net
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