Industry Updates

CrossBorder Capital‘s Howell: ‘Bitcoin will hit $250,000’

Investors eye hedging benefits

Lauren Gibbons

Howell EEU

Michael Howell, managing director of CrossBorder Capital, expects bitcoin to hit $250,000 over the next three to five years as faith dwindles in the US Treasury market.

Speaking at ETF Stream’s ETF Ecosystem Unwrapped, Howell said investors are becoming increasingly aware of the hedging benefits in a period of monetary inflation.

“Bitcoin in particular is an extremely good hedging tool it tends to have a sensitivity factor, about three times out of gold,” he said.

“People are losing confidence in the US Treasury market. They are moving into alternative assets, alternative safe assets, and they are starting to move into gold and bitcoin.

“I am not advocating crypto per se, all I am saying is it has demonstrably been an extremely good monetary case over the last few years.”

If added liquidity in the market looks to be increasing, meaning “you are going to make a lot more money out of bitcoin”.

Bitcoin has long been touted as a “digital gold” and has been speculated by some to supplant gold as a store of value over the longer term.

Bitcoin hit fresh highs in March, peaking at $74,000 per coin.

The cryptocurrency has been buoyed by the launch of a spot bitcoin ETF in the US in January, with the 34 ETFs now housing $59.2bn assets under management.

The ETFs have had a direct impact on the price of bitcoin, with demand outstripping new creations.

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