Bitcoin To Become a Safe Haven For Investors During Next StockMarket Crash?

Safe Haven
As Bitcoin (BTC) reached a new record high for the third week in a row, there have been some speculations in the financial industry that institutional investors might seek a safe haven in digital currency in the future. Max Keiser ‘s prediction last week of BTC eventually reaching $100,000 doesn’t seem so far off now, as its price begins to climb and top financial heads, have begun to jump on board. Mikhail Mashchenko, EToro analyst, spoke to RT and states, “financial institutions could look to Bitcoin if major financial crash hits global markets.” He added: “The demand for Bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance.” The stock market is currently in its second-longest bullish streak in history, currently at 104 months, Wall Street is gearing up for its inevitable shift. The longest streak in history was after the year 2000 where it made a 113-month run. If Maschenko’s predictions are correct, Bitcoin will have some sort of play in all of it.

Fluctuating Opinions

In the financial sector, it seems that there have been competing opinions on the cryptocurrency space. Just last week, JPMorgan announced that they will be offering Bitcoin futures set to launch in two weeks on the Chicago Mercantile Exchange. Many of the major European banks have been on opposite spectrums when it comes to supporting or bashing Bitcoin. What’s most exciting about this the current JPMorgan news is their CEO, Jamie Dimon, has been consistently in the news for slamming Bitcoin calling it a “fraud” but now his company, will be participating in the upcoming futures trades.

Right Direction?

When and if the stream of institutional investors start dipping their toes and invest large amounts of capital into cryptocurrencies a few of those predictions could be made true. Tom Lee, a 25 year Wall Street strategist, predicted back in August that Bitcoin would reach $6,000 by mid-2018 and in five years would reach $25,000. When a lot of regulations hit at the beginning of September, he held his ground on predictions despite being widely criticized. Lee’s prediction of $6,000 back in August now seems extremely conservative, whereas Mashchenko’s belief now is that Bitcoin will reach $10,000 by the end of 2017. “We could see a Bitcoin at $10,000 in a month or so. However, such a surge will be based on emotions, not on fundamental factors. So, further growth of the cryptocurrency will require something more than euphoria.”

Source: CoinMarketCap

His predictions do not seem far off, seeing as Bitcoin has surged in price over $1,000 in just a couple of days. At press-time Bitcoin is trading at $9714.02 and up 3.78% for the day. At the rate of its current growth, Mashchenko prediction could happen within the current week. Featured Image: Depositphotos/© SergeyNivens

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