Diginex Projects Bitcoin Will Reach $175,000 By Year-End
Diginex CEO Richard Byworth said his company projects that Bitcoin (BTC) will reach at least $175,000 by the end of the year. BTC’s current rise due to adoption as a hedge against inflation, but also “supply side crisis,” says Byworth. Only the Fed reversing inflationary policies could diminish BTC’s adoption, which Byworth says they cannot risk. Promo Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!
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Richard Byworth, CEO of Diginex, said his company projects that Bitcoin (BTC) will reach at least $175,000 by the end of the year. Diginex is a digital asset financial services company based in Singapore.
Byworth said the institutional adoption BTC has already started to see was key. He also highlighted growing interest from “the corporates.”
“You’re seeing macro hedge fund managers that have been in this space for some time. You’re now starting to see some of the bond guys get involved in this space,” Byworth said.
He also said there was a growing recognition of BTC’s value over gold. Byworth concluded that his company had modeled the $175,000 by the end of October, noting that it could surpass that.
“Supply-Side Crisis”
When asked on Bloomberg Markets what contributed to BTC’s current rise, Byworth’s answer was two-fold. “Massive monetary stimulus against the devaluation of the dollar” was pushing investors into Bitcoin, he said. BTC as a hedge against inflation is a widely-circulated argument for its increased adoption.
However, Byworth noted that this increased adoption was also taking its toll on BTC’s price. He cited high-profile acquisitions by MicroStrategy, Tesla, Square, as well as his own company. “Between the four of those companies, they bought 40% of the annual supply of Bitcoin in just a few months,” he said. This, coupled with BTC’s new supply being halved in May last year, constitutes a “supply-side crisis,” according to Byworth.
“This is only the early stage of the rally,” he said, “things are going to get a lot more heated from here.”
What could stop BTC?
The Diginex CEO was then asked what a potential impediment could be to his company’s expectations. Byworth said he thought that a reversal of the US Federal Reserve’s (Fed) inflationary policy could “put a bit of a damper on things.” However, he argued that the Fed was not in a position to do that. Byworth said the Fed could not risk deflation under any circumstances.
“It’s absolutely impossible that they could allow for that to happen especially when you’ve got a longer-term technological backdrop that is very deflationary,” he continued. Byworth said that developments in AI, such as self-driving cars, would lead to increased unemployment. Byworth noted that the Fed was aware of this. “So, even though they may react in the short term with a brief uptick in rates that they’re going to be pulling that back very, very quickly,” he concluded.