Matrixport CEO Xiao Lei believes that the Bitcoin price rally is likely to breach the $50,000 psychological barrier this month. In an interview with media outlet International Business Times, the CEO noted that several factors such as a lack of a reliable benchmark currency, massive stimulus injected by governments into the markets, and institutional acceptance of cryptocurrencies as an asset class, have all helped to drive theBitcoin price surge. He further noted that, as the world’s first and most popular cryptocurrency, Bitcoin is the most direct beneficiary of all these factors, demonstrating a high correlation to the stock market and economic health.
Lei believes the enormous upside potential of Bitcoin is still largely untapped, and may reach $100,000 by the end of 2021. He also opined that most of 2020’s rally was driven by retail investors, who now make up only around 20% of the total Bitcoin trading volume, and that institutional investors have only recently begun to explore digital asset investment opportunities. With large investment firms such as Guggenheim, Morgan Stanley, and Ruffer Capital now investing in Bitcoin, Lei believes that more institutional investors are likely to get on board soon, driving the Bitcoin price even higher. He concluded that this will likely be the year in which the Bitcoin price breaks through the $50,000 mark.