Jan Van Eck, CEO of global investment manager VanEck, believes the value of one bitcoin could skyrocket to $250,000, but the quarter-million-dollar prediction could be decades away.
Bitcoin at $250,000 Could Take a Decade
VanEck CEO made a bullish price prediction in a recent interview With Barrons but noted that it is difficult to say exactly when the price of bitcoin will reach $250,000. Van Eck’s forecast is made against the backdrop of a general bear market for cryptocurrencies.
Bitcoin is struggling to hold its own above $30,000, constantly dropping below the mark. Meanwhile, other prominent figures besides Van Eck have also made bold BTC price predictions.
Back in January, the research group ARK Invest stated that by 2030, one BTC could be valued at $1.36 million. Bitcoin’s main proponent and CEO of MicroStrategy, Michael Saylor, is optimistic that the price of the cryptocurrency could reach $1 million in the future.
Jan Van Eck, also a bitcoin proponent, said that the value of BTC could rise even more because it is an asset with a maturity date.
The CEO added that Bitcoin has also gained wider acceptance from institutional investors and governments interested in the asset. El Salvador and the Central African Republic are two countries that have made BTC legal tender.
Speaking of gold, which hasn’t seen much growth in two years, Van Eck mentioned that bitcoin taking up part of the demand for the precious metal is one of the reasons for its sluggish price performance.
However, the head of VanEck believes that “gold will be better off when everyone is worried about the global recession and asking when the Fed will cut rates next. Until then, gold had some headwinds.”
Van Eck Owns Bitcoin and Ethereum
Van Eck also said that investors should place a maximum of three percent of their portfolios in BTC, showing that his exposure to bitcoin is higher due to his strong belief in the asset. The CEO has also owned Ethereum since 2019, saying it makes sense to have a diversified portfolio.
Regarding Bitcoin spot exchange-traded funds (ETFs), Van Eck said:
“The SEC does not want to approve a Bitcoin ETF until it has jurisdiction over the underlying cryptocurrency exchanges, which is required by law. And in an election year, it is unlikely that the law will be passed. I’m thrilled that there are bipartisan conversations about what this legislation should look like.”
VanEck was one of the first companies to apply for a Bitcoin Spot ETF. However, the US SEC delayed and rejected several management company applications. But the regulator approved the firm’s Bitcoin futures ETF offer back in October 2021.
Featured image courtesy of MarketWatch
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