Many predictions focused on the price of Bitcoin (BTC) in 2021 did not come to pass as the premier digital currency ended the year below its All-Time High (ATH) above $65,000 amidst a massive bearish correction toward year-end that pushed the coin below $42,000 earlier this week.
Despite the likelihood of volatility changing predictions, Guido Buehler, the Chief Executive Officer Switzerland-based Seba Bank, a crypto-focused banking firm with operations in at least nine countries, said he expects the price of Bitcoin to hit a new high of $75,000 this year, against all odds.
“We believe the price is going up,” Guido Buehler pointed out 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. I’m quite confident we are going to see that level. The question is always timing.”
With Bitcoin price still down by about 7.8% in the year-to-date period, the growth in the 10-Year Treasury Yield accounts for the agitation amongst investors. The growth in the Treasury Yield can fasttrack the reinstatement of interest rates by the US Federal Reserve which in turn will see investors who have favored crypto for its high yield returning to traditional investment assets.
“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,” said Noelle Acheson head of markets research at Genesis.
Bitcoin Price and the Corporate Investor Push
The first quarter of 2021 was the period in which American electric car manufacturer, Tesla Inc pumped $1.5 billion into purchasing Bitcoin. The move marked a new era for the nascent asset class as it went on printing new ATHs following the capital inflow.
According to the Seba Bank CEO, institutional investors are also going to be very instrumental in helping Bitcoin fulfill the targeted price mark through both direct stack-up or investment in ETF products.
“Institutional money will probably drive the price up,” he said. “We are working as a fully regulated bank. We have asset pools that are looking for the right times to invest.”