Hedge Fund Co-Founder: Bitcoin Could Soar to $4,400 in Two Years

     Daniel Masters, co-founder of Global Advisors Bitcoin Investment Fund PLC, told Reuters in an interview that he expects the price of the cryptocurrency to rise to $4,400 by 2017. Global Advisors Bitcoin Investment Fund PLC is a multimillion-dollar hedge fund dedicated to the bitcoin ecosystem and is headquartered in New Jersey.

     Daniel believes that Bitcoin could retest its all-time high of $1,100 in 2016 and then quickly rise to $4,400 the following year. He believes that some fundamental factors will then catch people’s attention. In the next few years, the acceptance of Bitcoin payments by large companies and banks, the rapidly growing interest in blockchain technology, and the huge demand in China are the most significant factors that will help prices rise.

The 2016 halving of the reward to 12.5 bitcoins is also expected to reduce the money supply and will be a driving force for price increases.

Masters said emerging markets have failed to realize the full potential of the reward halving.

     “If OPEC came out tomorrow and said, ‘In six months’ time we’re going to cut oil production in half,’ the price of oil would react instantly. But the bitcoin market is still in its infancy, so I don’t think that factor is going to completely drive the price down.”

    BTCC CEO Bobby Lee reiterated his optimism, saying prices could reach as high as $3,500 by next summer.

     He believes that even if people underestimate this asset now, it will reach its full value sooner or later. Bobby Lee said in an interview with NEWSBTC earlier that in the long run, he sees the appreciation of Bitcoin prices.

     Jeremy Millar, partner at Magister Advisors, a British technology industry consulting firm, also stressed that the law of supply and demand will play a vital role in price appreciation. He told Reuters that the demand for this decentralized digital asset continues to grow.