Bitcoin’s runaway rally could accelerate next year as the cryptocurrency continues to gain wider acceptance, a trader said Monday.
“I wouldn’t be surprised to see a six figure headline,” said Dave Chapman, Managing Director of cryptocurrency trading firm Octagon Strategy, who sees the cost of bitcoin exceeding $100,000 before the end of 2018.
The digital currency was changing hands about 10.7 percent higher at above $16,642.45, according to CoinDesk’s Bitcoin cost Index. The index tracks prices via digital currency exchanges Bitstamp, Coinbase, itBit in addition to Bitfinex.
Chapman has made bullish bets before. He successfully called bitcoin’s dizzying ascent past $10,000 earlier from the year.
“I was quoted back in August when bitcoin was trading at around $4,000 of which we might have a 5 figure headline by the end of This kind of year,” he told CNBC’s “Squawk Box.”
“I think a lot of people thought I was crazy, a lot of people scoffed at me, however of which’s OK,” he said.
Rising interest via institutional in addition to retail investors has made bitcoin one of 2017’s hottest trades. The cryptocurrency’s cost has surged more than 1,000 percent This kind of year.
Its rising popularity has prompted global exchanges such as the Cboe to launch futures contracts, a move market participants said will bring in more institutional investors in addition to curb gyrations from the volatile cryptocurrency. A contract via rival CME will go live next week.
Trading of the hotly anticipated futures contract began on Sunday on the Cboe, representing a significant step from the legitimization of cryptocurrencies.
“The cost to me is actually probably the most uninteresting component about bitcoin. I’m more excited from the applications in addition to more excited about what This kind of means for people who don’t have access to financial inclusion,” he said.
“If we focus on the cost, we’re losing track of the big picture.”
however not everyone is actually convinced about bitcoin’s appeal.
“This kind of is actually a toxic concept for investors,” Stephen Roach, Yale University senior fellow in addition to the former Asia chairman in addition to chief economist at investment bank Morgan Stanley said last week.
“This kind of is actually a dangerous speculative bubble by any shadow or stretch of the imagination,” he told CNBC’s “The Rundown” last week – suggesting of which exchange legitimization makes bitcoin “somewhat dangerous” for investors, given what he described as a “lack of intrinsic underlying economic value to the concept.”
however Chapman remains convinced of his view.
“I think bitcoin is actually growing up,” he said, hitting back at what he called “bitcoin naysayers” like “academic economists” who take a conservative view in addition to fail to see the cryptocurrency’s potential.
“Bitcoin allows the immediate transfer of value via one individual from the earth to any various other individual from the earth, in addition to of which does of which without a middle man. of which’s its value,” he added.
Chapman said bitcoin’s scarcity is actually a key factor behind his bullish call, however of which’s not the only reason he expects to see a six digit cost from the future.
“If you look at bitcoin in addition to its impact on finance, of which’s definitely not of which crazy to think of which bitcoin could be an extremely huge disruptor to finance as we know of which today.”