$3,000 has come, is $5,000 far behind? The massive influx of hedge funds is a sign of rising coin prices

Recently, the price of Bitcoin on Chinese exchanges has surpassed $3,000, setting a new high. Judging from 99Bitcoin’s Bitcoin obituary, this is not a bad achievement for a coin that has been “dead” 134 times.

Despite skeptics like Mark Cuban (who has recently changed his mind, according to Babbitt), who assert that Bitcoin is destined to correct, there is ample evidence that Bitcoin is not a bubble. Keiser Report host Max Keiser, a long-time cryptocurrency supporter, tweeted that he believes $5,000 Bitcoin is just around the corner.

Keiser made this point after retweeting Goldmoney CEO Roy Sebag, who said he had just attended a meeting where a well-known hedge fund manager mentioned that his hedge fund was "getting into cryptocurrencies" and that it was "helping them improve their performance."

Keiser believes the fund manager’s comments hint at a wave of institutional investment into Bitcoin. He said:

Hedge funds are 'social animals', and if one starts putting money into Bitcoin, others will join in; $5,000 is just around the corner.

As Bitcoin moves toward the mainstream, fund managers and the public alike will view it not as a taboo investment, but as an investment vehicle of choice, or at least a way to diversify their holdings.

This is indeed the case. British hedge fund Global Advisors recently evaluated Bitcoin and concluded that once Bitcoin successfully deploys the expansion plan, the price of the currency can double. According to the Financial Times, four large Japanese and American hedge funds have begun to buy the claims of Mt. Gox account holders, and as long as the price of the currency rises, they can reap a large windfall.

Bitcoin still has a long way to go before it reaches $5,000, but if the current trend continues, some cautious investors will soon regret not buying Bitcoin at $3,000. Keiser, in his view, believes that Bitcoin can reach $100,000, and he said in a tweet that he had already started promoting Bitcoin when the price was $3.