Although the crypto markets are seeing a bout of volatility that has sent them spiraling downwards today, one notable critic of Bitcoin and cryptocurrency in general is now predicting that Bitcoin could hit $5,000 in the near future.
The comments came about as the markets are seeing increased weakness after Bitcoin failed to stabilize above $4,000, which means that it is plausible the markets will see further losses before reaching the $5,000 mark.
Risk Tolerant Investors Could See Easy Profits on Bitcoin
The comments regarding Bitcoin hitting $5,000 came from Jeffrey Gundlach, the CEO of DoubleLine management, who is a notable Bitcoin critic and the manager of more than $200 billion in assets.
While speaking to CNBC, Gundlach noted that investors who hold a high tolerance for risk could make easy profits if they are willing to trade Bitcoin. Although this seems positive, it is important to note that he is an outspoken critic of the cryptocurrency who has previously told investors to “get the heck out of Bitcoin.”
“I don’t recommend anything with bitcoin, really … but if you really want to speculate, I think it could make it to $5,000. Talk about an easy 25 percent,” he explained.
Presently, analysts believe that Bitcoin is caught in a wide trading range between $3,000 and $5,000 which validates Gundlach’s view that Bitcoin could easily reach this price in the near future. The question is whether or not bulls will be able to build enough upwards momentum to propel the crypto’s price above this level.
“If we zoom out…we can see that the overall range that we’re in is from $3,000 to $5,000 per coin… So we’re now at the halfway mark in the middle of the broader range,” Mati Greenspan, the senior market analyst at eToro, explained in a market update earlier this week.
Analyst Group: Crypto Markets Are Moderately Bearish Entering 2019
Although Bitcoin could very well be propelled to $5,000 in the near future, one market index is currently ranking the cryptocurrency markets as “moderately bearish” as they enter 2019.
According to the SFOX Multi-Factor Index, the crypto market’s current bearishness stems from a combination of the massive volatility the markets witnessed throughout 2018 which has spilled into the New Year, and FUD which resulted from increasing regulatory crackdowns from global governments.
The index uses multiple factors, including “volatility, market sentiment, and continued advancement of the sector” to gage and quantify the market conditions, and ranges from highly bearish to highly bullish.
As far as volatility is concerned, the index notes that Bitcoin Cash and Litecoin were some of the most volatile major altcoins in 2018, while Bitcoin was one of the least volatile. This volatility mostly stems from the meteoric rise and ensuing crash those assets saw towards the beginning of 2018.
Although the crypto markets are undoubtedly still feeling the impacts of the 2018 bear market and are likely caught in a wide trading range between $3,000 and $5,000, even critics of the markets see that there are major profits to be made.