Bitcoin, after surging at the beginning of the year, has plateaued over the last couple of months.
The bitcoin price nudged $65,000 per bitcoin in April before falling back slightly—with other, surprising cryptocurrencies stealing the limelight.
Now, the chief investment officer of hedge fund Morgan Creek Capital Management has predicted the bitcoin price could soar to $250,000 within five years, arguing bitcoin “is going to become the base layer protocol for the internet of value.”
“It’s just about network adoption and increased usage,” Mark Yusko told CNBC. “This is a network and networks grow in an exponential way. This is the fastest network in history to a trillion dollars of value.”
Yusko argued that the bitcoin price could rally to $250,000 per bitcoin token—a price that would make the bitcoin market capitalization around $4 trillion—comparing it to gold.
“What people miss is this is a technological evolution of computing power that isn’t going away,” Yusko said. “It is a powerful computing network that is going to become the base layer protocol for the internet of value.”
This year, Tesla billionaire Elon Musk and other high-profile investors have whipped the bitcoin and wider crypto market into a speculative frenzy, helping the bitcoin price to soar by around 450% since its latest bull run began in October.
The rally was sparked by PayPal announcing its support for a handful of cryptocurrencies and further boosted by the emergence of long-awaited institutional adoption.
In the meantime, bitcoin traders and investors have begun to nervously eye bitcoin charts after its rally slowed.
“Bitcoin has lost its short-term upward momentum,” Pankaj Balani, the chief executive of Delta Exchange, said in emailed comments, warning traders should watch for a fall under $50,000.
“Any move below $50,000 in bitcoin will lead to a sharp increase in market volatility and all crypto assets including bitcoin and ethereum should move lower. Traders should keenly watch the $60,000 level as major resistance in case of any bull trap rally.”