CEO of the Blackmore Group and Wealthchain Group, Phillip Nunn, predicted in January 2018 when Bitcoin’s price was near USD 10,000 that Bitcoin would drop to USD 6,000 and then rally to USD 60,000 before the year was over. The first half of his prediction has already come true, with Bitcoin’s price sitting near USD 6,400 as of this writing and dropping as low as USD 6,100 in the past week. Nunn has reaffirmed that he believes the second half of his prediction will come true too.
This prediction is based on the high volatility levels of the cryptocurrency markets. The markets are so small and lack liquidity relative to global stock markets, so news has major effects on cryptocurrency prices. According to Nunn, this is especially true since all the money in the cryptocurrency market is from the public, so the biggest factor in price movements is public sentiment towards the news. This is unlike global stock markets where institutional investor’s decisions control the market.
Nunn believes that blockchain technology has the potential to disrupt every industry and that we’re moving away from an internet of information towards an internet of value. He says blockchain technology is a safer way of working because it is decentralized.
He claims to be talking to banks and investment firms every day and they are all interested in getting into cryptocurrency, but market volatility is a major barrier for institutional money flowing into the market. In an example he gave, even if a fund manager wanted to put 5% of their assets into cryptocurrency, it would upset investors because the cryptocurrency markets are risky.
Currently, Bitcoin has a market cap near USD 110 billion. For Phillip Nunn’s USD 60,000 prediction to come true, the market cap would have to rise to about USD 1 trillion. Back in 2015 Deutsche Bank estimated that the world had USD 294 trillion of financial assets, so many believe Nunn’s figure not to be unrealistic. Whether that will happen within the next six months remains to be seen.
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