CoinShares Chief Strategy Officer Expects Bitcoin Price To Rise Further In 2021
Meltem Demirors, Chief Strategy Officer at Europe’s largest crypto asset management firm CoinShares, expects Bitcoin price to rise further in 2021, simply because “there is just not enough Bitcoin to meet the massive wave of demand.”
“I think there will be volatility and cyclicality, but the trend over the next year will continue to be upward, because this is really a supply-demand story,” Demirors told ETMarkets.com in an email interview.
Demirors pointed to the massive influx of institutional investors into Bitcoin over the past 12 months, which has driven demand for the cryptocurrency to stratospheric levels. “The demand is coming from institutional investors, who want to allocate not $10 million or $20 million or $30 million, but $100 million or $500 million or even a billion dollar in one ticket,” she said.
Demirors’ investment firm has seen its assets under management quadruple to $4 billion in a space of four months, as the trailblazing rally in Bitcoins drove institutional and retail investors towards the asset class. Bitcoin has rallied as much as 700 per cent since April to hit a record high of over $42,000 this past week.
On Monday, the cryptocurrency crashed 20 per cent, but has since recovered nearly all of those losses as large investors accumulated the asset at lower prices.
“You bet that every institution, every corporation, every government around the world is talking about Bitcoin. They are having investment committee meetings to talk about allocation strategy, and Bitcoin is definitely part of that conversation at every institution on the street… every single institution,” Demirors said emphatically, highlighting the rising prominence of the once maligned asset class.
Source: economictimes.indiatimes.com
