Popular cryptocurrency trader and market analyst Michaël van de Poppe has recently he revealed he believes that the “current valuation of Bitcoin is still super low,” adding he wouldn’t be surprised if the cryptocurrency’s price explodes to $300,000 to $600,000 this cycle.
His comment came in response to a quote from the world’s largest asset manager, BlackRock, which said that Bitcoin could be a “hedge against increasing global disorder and declining trust in governments, banks, and fiat currencies.”
Bitcoin is at the time of writing trading above the $59,000 mark after surging nearly 10% over the past week after seeing a massive downturn from over $64,000 late last month to a low below the $53,000 mark.
This explains it all.The current valuation of #Bitcoin is still super low.I wouldn’t be surprised with $300,000-600,000 this cycle. https://t.co/5GUaBPMZ6A
— Michaël van de Poppe (@CryptoMichNL) September 12, 2024
The world’s largest asset manager saw its assets under management surpass the $10 trillion mark for the first time in the second quarter of the year, after rising 13% from the same period last year and seeing $82 billion of net inflows.
BlackRock’s dominance extends beyond traditional asset management. The company is also the largest public holder of bitcoin through its iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF), which currently holds more than $20 billion worth of the cryptocurrency.
As CryptoGlobe reported, Bitcoin holders have moved around $750 million worth of the flagship cryptocurrency out of centralized exchanges in a single day this week, leading to largest net Bitcoin outflow since May.
Historically, similar outflows have been followed by price increases as often a lower supply on exchanges can lead to a price rise if demand remains steady or rises.
For instance, a significant withdrawal in late May coincided with a rally that propelled Bitcoin’s price from just below $68,000 to $72,000 within days. Conversely, large inflows have often led to price declines, as evidenced by the crash in late July and early August, according to IntoTheBlock’s data.
Featured image via Unsplash.
