Hong Kong’s Kenetic Capital Executive Puts Bitcoin Price Seeing $30,000 BTC/USD By End Of 2019
Kenetic Capital Co-Founder Sees Bitcoin Reaching $30,000 Price Level By Next Year’s End
- Jihan Chu explains three factors that will pivot Bitcoin above the $30,000 price level.
- His factors include the Bitcoin halving, disappointments in IPOs, and involvement from institutional companies.
As Bitcoin seems to keep rising, Jihan Chu is joining the rest of the cryptocurrency community with his own predictions. Chu, the co-founder of Kenetic Capital, spoke with Bloomberg recently, outlining three reasons that a bullish trend could be coming to the market. He breaks down the halving that is coming to Bitcoin, how tech IPOs have hardly kept up with their name and the way that the institutional market is getting into cryptocurrency. As a result of these factors, Chu sees Bitcoin reaching $30,000 by the end of 2019.
The prediction from Chu comes at the same time as Bitcoin nears the $9,000 price level. At the time of writing, Bitcoin is presently valued at $8,737.42 for each BTC, losing about 0.11% in value through the last 24 hours. Still, Chu points out that the last decade of performance shows as proof that the crypto market is here to stay.
Big companies will have a lot to do with the adoption of Bitcoin, according to Chu. After all, Facebook finally announced their progress on Globalcoin, and JP Morgan has been preparing their JPMCoin for payment settlements. Fidelity has even launched a custodial service for cryptocurrency.
Chu explained a theory he has about the investors of the traditional world, who have been disappointed by tech IPOs. Lyft and Uber both held these fundraising efforts, only to fall flat. He believes that these failures are leading investors to seek out “a different type of tech story” that anyone can access.
The most encouraging factor in his argument is the halving of Bitcoin mining rewards, which is meant to help maintain the Bitcoin hard cap – 21 million BTC. In the past, as these halving events near, the prices tend to rise as early as a year before the event. With these three factors considered, Chu believes that the year will end at $30,000 or greater.
Though Chu did not point to the possibility of an exchange-traded fund (ETF) for Bitcoin going through, the approval of this type of product would also provide exposure to the market. Chu clarifies his stance, explaining that it was not included in these factors because he does not believe that the ETF will ultimately be “listed anytime soon.”
Instead of the ETF approval that the public appears to be awaiting, Chu explained that the push to adopt Bitcoin at a mass level will happy with major companies getting involved. He added that even Samsung is implementing a cryptocurrency wallet in some of their smartphones, and this progress will happen with or without the ETF.
As far as altcoins, Chu reiterated his support for Bitcoin as the “biggest brand.” As such, he sees it as the “center of gravity” for altcoins, though he has a special place in his heart for Ethereum. He said that the coin is not going away, adding,
“The rate of adoption and the rate of development that the Ethereum team are providing a decentralized global computer is just astounding.”
He also praised Ripple and XRP for their progressive offering of various payment solutions for banks.