Blackmore Group (investment firm based in Manchester) CEO, Phillip Nunn, makes a really bullish prediction that got the entire cryptocurrency industry talking. He says that 2018 will basically be the year of Bitcoin, with its price reaching an incredible $60,000.
Nunn advises on crypto topics and ICO projects. In an interview he stated that Bitcoin will have values between $6,000 and $60,000 in 2018. He basically noted that we are much closer to the high value than what we might think right now. He said:
The prediction was based on, first of all, market volatility which we’re experiencing at the moment; I think that’s really apparent. I absolutely stand by my prediction.
Before you get really happy about what was said, the Blackmore Group CEO stated that the money in crypto comes from people, not the institutional investors. This basically means, according to him, that everything is related to market sentiment. When bad news hit the market, it is hurt. Also, the industry is really small at the moment so market manipulation is possible.
What should be known is that the DOJ (US Department of Justice) started a criminal probe for market manipulation. This is definitely a good thing since it can help Bitcoin get back on a growing trend. Nunn talks to various larger financial institutions like hedge funds and banks and knows that these financial institutions are now highly interested in the crypto industry. However, an entry point is really hard to find because the vehicles available at the moment are not really suitable for the larger investments. Nunn declared:
There’s no entry point at the moment. If you’re a pension fund with 5 billion in your pot and you want to take a 5 percent position in crypto you’re going to really piss your investors because of the volatility in the market.
When talking about the possible mass market wipeout reported by some institutions and the projected 90% price correction, Nunn states that everything is related to sensationalism and the GP Bullhound report is subjective. However, he did agree with the fact that different projects in the crypto space will disappear.
According to the hedge fund advisor, the big cryptocurrencies like Litecoin, Ethereum and Bitcoin are the main part of the industry while the other tokens (over 1,600 of them) are just alternatives used for venture capital money. This automatically implies that most of the tokens are going to fail. However, those that do succeed can quickly grow in a way that is similar to what Facebook and Google did in the past. His conclusion on the topic was:
The reality is nobody knows how many will fall. This is different, because you’ve got guys who are raising $50 million where they’d usually raise $2 million from regular options so maybe more start-ups will succeed because they’ve got a war chest and a lot more running room.