$59,994.27
-6.39%
$3,272.16
-5.73%
$69.28
-7.24%
$22.55
-5.2%
$157.52
-2.74%
$0.00
-0.01%
$22.63
-1.22%
$0.12
-5%
$19.26
-1.45%
$0.00
-3.37%

Bitcoin could rise to $75,000 this year to top record high, bank CEO predicts


The value of bitcoin exceeded the threshold of $66,895 in October for the first time in history.

Chesnot | Getty Images

Bitcoin’s price could nearly double to $75,000 this year as more institutional investors start to embrace the world’s most popular cryptocurrency, according to the CEO of Swiss bank Seba.

“We believe the price is going up,” Guido Buehler told CNBC’s Arjun Kharpal at the Crypto Finance Conference in St. Moritz, Switzerland, on Wednesday.

“Our internal valuation models indicate a price right now between $50,000 and $75,000,” said the boss of the regulated Swiss bank which has a focus on cryptocurrencies. “I’m quite confident we are going to see that level. The question is always timing.”

After soaring to an all time high of $69,000 in November, bitcoin has seen its value collapse over the last couple of months and its price briefly tumbled below $40,000 on Monday, meaning it is hovering near lows not seen since September.

Asked if bitcoin will test the record levels seen last year, Buehler said he “thinks so” but he stressed that volatility will remain high.

This week’s price fall came as rising Treasury yields — and the prospect of higher central bank interest rates — continued to lead investors to shed positions in risky, growth-oriented assets.

Bitcoin fell as much as 6% Monday to touch a low of $39,771.91, according to Coin Metrics. It traded at $42,921.55 at around 5 a.m. ET on Wednesday.  

Declines across the cryptocurrency market follow a week of rough trading for equities, particularly momentum stocks. As the 10-year U.S. Treasury yield spiked at the start of 2022, investors have been rotating into more cyclical and value names. On Monday, the 10-year climbed as high as 1.8%, after ending 2021 at 1.5%.

“We’ve seen bitcoin behave like a risk asset on numerous occasions over the past few months,” said Noelle Acheson, head of market insights at Genesis.

“When the market gets jittery, bitcoin tumbles. We’ve seen various indications that market sentiment is somewhat spooked by the spike in the 10-year — that’s not good for any asset that has high volatility in cash flows. Unlike many assets that are tainted by this brush, bitcoin is liquid and therefore can take more selling pressure without a heavy hit.”

Institutional investors



Read More:
Bitcoin could rise to $75,000 this year to top record high, bank CEO predicts