Bitcoin hits new highs, brushes off overvaluation fears: Bitwise CEO
Bitcoin hits $77,000, driven by institutional demand
This week, Bitcoin soared to new all-time highs, sparking concerns over potential overvaluation despite high demand from institutional investors.
Hunter Horsley, CEO of Bitwise Asset Management, claims that BTC investors are less concerned about overvaluation than stock traders.
According to Bitwise, Bitcoin’s value reached a record high of $77,000 in recent days, driven by institutional interest and broader market dynamics. This recent rally has ignited new enthusiasm among market participants, many of whom see Bitcoin as a hedge against inflation and traditional financial market volatility. On his page on X, Horsley emphasized that, while Bitcoin’s rally is rapid, it does not reflect an “overvalued” asset. Instead, he argues, Bitcoin’s growth represents a long-term shift in how investors perceive digital assets.
“When Bitcoin’s price rises, people believe it’s more likely to succeed and therefore become even more valuable. And thus, it’s more likely to rise further,” Horsley wrote.
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Horsley’s stance comes at a time when Bitcoin’s valuation is under close scrutiny from skeptics, who warn of a speculative bubble. However, according to the Bitwise CEO, these concerns overlook the significant demand driven by institutional players seeking exposure to cryptocurrency. This institutional interest has helped position Bitcoin as a legitimate asset class in the eyes of traditional investors. Horsley highlighted that, given this shift in market perception, Bitcoin’s current valuation is sustainable and reflects its utility and scarcity as a digital asset.
Despite Bitcoin’s strong performance, some analysts warn that the volatility associated with cryptocurrency investments could pose risks for newcomers. The extreme price swings in the cryptocurrency market can lead to rapid gains but also equally rapid losses.
In conclusion, it’s worth noting that Jan van Eck, CEO of global investment firm VanEck, recently made a bold prediction that Bitcoin could rise to $300,000. Jan van Eck emphasized that BTC could become the next “digital gold” as a store of value.
