Bitcoin Could Soar to $40,000 by Year End, Predicts Sologenic Co-Founder
Sologenic Co-Founder Bob Ras recently revealed his insights on Bitcoin’s trajectory amidst the current banking crisis and potential changes in the Federal Reserve’s monetary policy.
Speaking to Phil Rosen, a Senior Report at Business Insider, Ras indirectly outlined how Bitcoin has been increasingly viewed as a viable hedge, given its decentralized characteristics and absence of counterparty risk, as traditional banks continue to falter.
In the discussion, Ras inferred that Bitcoin could potentially benefit from the Fed’s expected loosening of monetary policy, which could result in a major liquidity injection into the market. He expressed his belief that Bitcoin’s value is already anticipating this scenario, implying a return to relatively low rates in the future.
Ras also projected that Bitcoin could reach a value of $40,000 by the end of the year, citing the cryptocurrency’s strong performance at the start of 2023 as a positive indicator:
“I wouldn’t be surprised if $40,000 could be reached by the end of this year.“
This robust performance, he suggested, was mainly due to Bitcoin being drastically oversold during the FTX collapse and a noticeable trend of increased Bitcoin accumulation during its lows. This situation, Ras noted, caused a supply shock in the market, making the price of Bitcoin more susceptible to any increase in demand.
However, Ras didn’t shy away from discussing potential risks to Bitcoin. He identified a severe credit crisis resulting in a rapid market contraction as the most significant risk that could impact Bitcoin prices. In such a scenario, Ras indicated that all assets, including Bitcoin and even gold, would likely correlate, leading to extreme volatility across the entire market. While he didn’t assert that this scenario would definitely occur, he recognized its potential and the resultant possibility of significant market turbulence.
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