Popular analyst Chico Crypto claims that Bitcoin will reach the long-awaited $ 100,000 threshold by the end of 2020. In his view, this upward trend will be determined by institutional investors.
There are some relevant arguments mentioned:
- Bakkt – the platform developed by the Intercontinental Exchange dedicated to crypto derivatives, began testing Bitcoin futures contracts this month. The company also submitted the necessary documentation to obtain a crypto custodian license in New York State. However, this process may take up to a year, although the financial authority in New York recently created a dedicated fintech department.
- LedgerX has already taken it before Bakkt regarding the supply of Bitcoin futures contracts. Omni ledger has obtained approval from CFTC for several types of bitcoin derivatives. Unlike Bakkt, LedgerX can offer these products to retail customers, not just institutional investors, as long as they can afford to invest a minimum of $ 10,000. For the moment, the service is only available to US citizens and Singaporeans.
- ErisX has also obtained CFTC approval for BTC futures contracts and plans to launch them soon.
Interest from institutional investors
All these products are in great demand from investors. This is evidenced by the increased volume of futures on the CME stock exchange, which records new records every month.
Chico Crypto points out that the total value of the futures contracts traded by CME exceeds 10 million Bitcoin. If they were liquidated in Bitcoin “physically”, the demand on the market would increase significantly and Bitcoin would reach record prices.
So, over the next six months, the price of Bitcoin is expected to rise. The target of $ 100,000 by the end of 2020 does not seem so hard to achieve under these conditions.
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