Bitcoin’s wild rally could accelerate next year as the cryptocurrency continues to move further wider acceptance, a trader said Monday.
“I wouldn’t be surprised to see a six representation headline,” said Dave Chapman, Managing Director of cryptocurrency swap firm Octagon Strategy, who sees the price of bitcoin exceeding $100,000 before the end of 2018.
The digital currency was trading hands about 10.7 percent higher at above $16,642.45, according to CoinDesk’s Bitcoin Cost out Index. The index tracks prices from digital currency barters Bitstamp, Coinbase, itBit and Bitfinex.
Chapman has made bullish wagers before. He successfully called bitcoin’s dizzying ascent past $10,000 earlier in the year.
“I was quoted following in August when bitcoin was trading at around $4,000 that we at ones desire have a five figure headline by the end of this year,” he told CNBC’s “Grouse Box.”
“I think a lot of people thought I was crazy, a lot of people scoffed at me, but that’s OK,” he mean.
Rising interest from institutional and retail investors has made bitcoin one of 2017’s hottest traffics. The cryptocurrency’s price has surged more than 1,000 percent this year.
Its be elevated popularity has prompted global exchanges such as the Cboe to launch expects contracts, a move market participants said will bring in numerous institutional investors and curb gyrations in the volatile cryptocurrency. A contract from antagonist CME will go live next week.
Trading of the hotly anticipated futures become infected with began on Sunday on the Cboe, representing a significant step in the legitimization of cryptocurrencies.
“The value to me is probably the most uninteresting component about bitcoin. I’m more uneasy in the applications and more excited about what this means for people who don’t partake of access to financial inclusion,” he said.
“If we focus on the price, we’re losing keep up with of the big picture.”
But not everyone is convinced about bitcoin’s appeal.
“This is a toxic concept for investors,” Stephen Roach, Yale University chief fellow and the former Asia chairman and chief economist at investment bank Morgan Stanley held last week.
“This is a dangerous speculative bubble by any shadow or distort of the imagination,” he told CNBC’s “The Rundown” last week – suggesting that transfer legitimization makes bitcoin “somewhat dangerous” for investors, given what he tell ofed as a “lack of intrinsic underlying economic value to the concept.”
But Chapman remainders convinced of his view.
“I think bitcoin is growing up,” he said, hitting clandestinely at what he called “bitcoin naysayers” like “academic economists” who experience a conservative view and fail to see the cryptocurrency’s potential.
“Bitcoin allows the pressing transfer of value from one individual in the world to any other individual in the exceptional, and it does that without a middle man. That’s its value,” he added.
Chapman said bitcoin’s paucity is a key factor behind his bullish call, but it’s not the only reason he expects to see a six digit quotation in the future.
“If you look at bitcoin and its impact on finance, it’s really not that daffy to think that bitcoin could be an extremely huge disruptor to capitalize as we know it today.”