Speaking to Kitco News, Grummes opined that investors should not rely on the rally witnessed in recent days but approach the asset with caution. He noted the asset would potentially experience further corrections in the coming months before a new record price. The director maintained that the $100,000 target is the conservative price for most of the cryptocurrency sector.
Price movement after $100,000
According to Grummes, if Bitcoin trades at $100,000, the asset price movement will embark on a historical trend. He notes that the asset will potentially surge as more investors pump in money, but Bitcoin might experience up to 70% sell-offs. However, he suggested that volatility will reduce at this point despite the possibility of wild swings. Additionally, Grummes believes that the asset might trade at $1 million in a few years. His prediction comes as Bitcoin attempts to trade above the $50,000, having embarked on a short-term rally in recent weeks. By the time of writing, Bitcoin was trading at $47,438. Grummes noted that the current price movement indicates that the market is in a crypto winter or on its way to $100,000. He further attributed the recent rally to Bitcoin being oversold while noting that the sector is increasingly becoming mature, having sustained a regulatory onslaught from jurisdictions like China. Grummes added that although the crackdown impacted the mining activity, the Bitcoin network has remained resilient. He further believes that Bitcoin would likely continue to outperform the precious metals until the end of the year. [coinbase]
