By the end of this year, Bitcoin could see a 5x increase in price. This is according to Blockstream's CEO Adam Back.
In a surprising prediction, tech entrepreneur and investor Adam Back told his 481,600 Twitter followers that he expects the U.S Federal Reserve to reverse its tight monetary policies before 2022 expires and create a macro-environment conducive to Bitcoin's growth
Back said that with a favorable macro backdrop and the possible approval of the much-awaited spot Bitcoin exchange-traded fund (ETF) that would trade Bitcoin, many bears may stay on their sidelines.
"My permabull case for BTC/USD [is] $100,000 this year. Plus a US physical Bitcoin ETF chaser (GBTC upgrade + other) would create a nice whipsaw and probably trigger a big uncoupling and positive reflexivity into a blow off top next year."
Even though the DeFi space is growing, Back still warns against taking leveraged positions due to the uncertainties surrounding the DeFi space.
"But what do I know? Just don't use leverage, and most particularly, not while the DeFi contagion works out. If you don't have leverage you can just buy and hold and wait so timing matters not. I'm a permabull. So I keep buying as I can afford. And hold. It works long-term."
Bitcoin is currently trading at $20,629, a 4.36% increase on the day.
Other prominent executives and wealthy investors have also shared their stances on cryptocurrencies amid the bloodbath. While many have come out to reiterate their skepticism of Bitcoin and the new asset class, such as Peter Schiff, others have been optimistic about a more prosperous future for space.
Former Goldman Sachs executive Raoul Pal, BitMEX co-founder Arthur Hayes, and SkyBridge Capital CEO Anthony Scaramucci are among those who have concurred with long-term bullish forecasts for Bitcoin; the latter even anticipates that the cryptocurrency could reach $100,000 by 2023. However, they have also warned that further losses could be forthcoming sooner.
Meanwhile, big-name financial institutions on Wall Street are also keeping a close eye on the picture. Among them, BlackRock itself reported this Friday that it will remain " neutral " with its positions in the face of the broader bearish scenario in the stock markets. He also advised investors to avoid the drop and not buy crypto now, Finbold reported.