Year to date, the cost of bitcoin has increased by around sixty-four per century and one bitcoin is presently worth around USD11.500, while new research reveals institutional investors expect further rises in the valuation of the cryptocurrency this year.
Morgan Investment Holdings surveyed institutional investors who collectively manage USD78.4 billion of assets. It found sixty per century think bitcoin will be worth over USD12.000 by the end of this year, and four out of ten (forty percent) expect one bitcoin to be valued at over USD15.000 by two thousand twenty-one. Only twenty-four per century thinks it’ll be worth USD10.000 or less In December two thousand seventeen, bitcoin nearly hit USD20.000, and twenty-two per century of institutional investors think it could reach this figure the following year, with twenty-eight per century anticipating this will happen in two thousand twenty seconds.
One key reason for the recent rise in the cost of bitcoin is its recent ‘halving’ (which happened in May), as the two previous times this happened led to rises in the valuation of the cryptocurrency. This helps clarify why one in four institutional investors (twenty-four percent) think the recent halving will lead to a dramatic expansion in the quantity invested in bitcoin, and sixty-eight per century think it’ll lead to a slight increase.
Oliver Bennet, a senior analyst of Morgan Investment Holding, says: “Institutional investors are clearly optimistic about the future valuation of bitcoin, and a number doubt their views here have been fuelled by the powerful growth in the cryptocurrency during July and August. However, a rising valuation isn’t sufficient to lure some institutional investors into the cryptocurrency market, as many have concerns regarding the infrastructure of this sector.
For example, eighty-eight per century is worried about the lack of adequate insurance cover for these assets, and ninety-two per century are concerned about the quality of the custodial services available. “The crypto asset market should address these issues if they’re really going to capitalize in full on the growing interest institutional investors are showing in these assets.