Guido Buehler informed CNBC’s Arjun Kharpal at Wednesday’s Crypto Finance Conference in St. Moritz, Switzerland, that they believe the price is going up.
According to the boss of the regulated Swiss bank, their internal valuation models indicate a price between $50,000 and $75,000, which focuses on cryptocurrencies. He added that he is pretty confident they will see that level. The question is always timing.
After flying to an all-time high of $69,000 in November, bitcoin has seen its value destruction over the last couple of months. Its price briefly tumbled under $40,000 on Monday, meaning it is hovering around lows not seen after September.
Bitcoin might test the record levels witnessed last year; Buehler stated he thinks so. However, he emphasized that volatility would stay high.
This week’s price fall arrived as increasing Treasury yields and the prospect of higher central bank interest rates persisted, leading investors to shed positions in complex, growth-oriented assets.
As stated by Coin Metrics, Bitcoin dropped as much as 6% Monday to handle a low of $39,771.91. It traded at $42,921.55 at about 5 a.m. ET on Wednesday.
Investors Are Confident
Downfalls over the cryptocurrency market follow a week of rough trading for equities, especially momentum stocks. As the 10-year U.S. Treasury yield spiked at the beginning of 2022, investors have become more cyclical and value names. On Monday, the 10-year climb was as high as 1.8% after finishing 2021 at 1.5%.
According to Noelle Acheson, head of market insights at Genesis, we’ve seen bitcoin behave like a risk asset on multiple occasions over the past few months.
Bitcoin tumbles when the market gets nervous; we’ve seen various signs that the spike somewhat shocks market sentiment in the 10-year. That’s not good for any asset with high volatility in cash flows. Unlike many assets tainted by this brush, bitcoin is liquid and can take more selling stress without a heavy hit.