Standpoint researcher Ronnie Moas raised his price target for bitcoin from $5,000 to $7,500, according to CNBC. Moas raised his price target after bitcoin reached the new all-time high this weekend.
Moas believes that hedge funds and more traditional investors are just starting to invest in bitcoin. Many expect that the CFTC’s decision to authorize the creation of the first clearinghouse for bitcoin options and swaps will hasten adoption by hedge funds and other more sophisticated traders.
“What’s happening is the floodgates are opening,” Moas, founder of Standpoint Research, said in a phone interview with CNBCon Monday.
“I believe there are hedge funds and very deep-pocketed individuals going into this now, really hundreds of millions of dollars.”
The longtime stock analyst first explained his bullish case in a research report published last month.
Moas also believes that central banks will soon discover bitcoin’s usefulness as a reserve asset.
As institutional investor interest in bitcoin grows, Moas expects digital currencies to become part of “strategic reserves” and “asset allocation models in the near future.” He also said people in foreign countries will likely want to buy digital currencies as a more stable alternative to their national currencies.
“You can’t look at this as a normal situation,” he said. “We’re in an industry that will probably go from $140 billion to $2 trillion and the bitcoin price will probably move with that.”
Amazingly, Moas claims 100% of his investments are in digital currencies, with the majority in bitcoin and Ethereum, according to CNBC.
Moas call comes on the heels of Goldman Sachs’ chief technician Sheba Jafari increased her forecast for Bitcoin to over $4800…
Finally, we note Moas’ conclusion that, if anything, his estimates are conservative.
