(Kitco News) – “I see Ethereum hitting $6,000 and Bitcoin reaching $100,000 by the end of this year. The sheer number of people stepping into this space is continuing to push that number up,” predicted Jason Urban, Co-Head of Galaxy Digital Trading.
Urban discussed his outlook on Ethereum and Bitcoin prices along with the institutional adoption of cryptocurrencies with Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News, at the Bitcoin 2022 Conference in Miami. Galaxy Digital Trading is a technology-driven financial services firm offering solutions across the digital assets’ platform.
Urban emphasized that the factors influencing cryptocurrency prices the most are how the Federal Reserve plans to fight inflation, and the Russian-Ukraine war. “Bitcoin is seen as a hedge against inflation. Anything that is being done to dampen inflation will be a headwind for Bitcoin,” he explained. “When you look at the space as a whole, there is so much money chasing returns moving into crypto. It’s really a function of leverage.”
Urban continued, “The biggest overarching factor impacting crypto is twofold. It’s the inflation piece for Bitcoin, and the investment thesis inside the rest of the ecosystem.”
Currently, Bitcoin is number one and Ethereum is number two for crypto market cap. Urban believes it is possible for Ethereum to overtake Bitcoin in two or three years. “That is probably the soonest it could happen, or there could be something else that we haven’t discovered yet that could be the next big thing. As innovation is driven forward, you could see this change a little bit,” he said. “It’s less likely that something else will replace Bitcoin because it’s so entrenched to what it is.”
Even though Bitcoin is supposed to be a hedge against inflation, it hasn’t played out that way recently. “We saw Bitcoin used as a hedge a little bit at the end of last year, where we saw an overlay chart of inflation and Bitcoin. They were mapping each other fairly uniformly,” Urban noted. “There’s a bit of disconnect on that now, but institutional investors, and macro investor’s view Bitcoin that way. I think investors should take a longer horizon view to Bitcoin being a hedge against inflation, not a short one.”
Urban spoke about the impact a possible recession could have on cryptocurrencies. “A recession weighs on everyone. We are seeing such innovation now, and people with deep banks now who can invest in that innovation,” he said. “If the Fed tightens in a Fed tightening cycle, or because there’s a recession, you will certainly see a knock-on effect in this space, even though it might be more resilient for example, than an industrial complex.”
Regarding institutional adoption of cryptocurrencies, Urban disclosed that 15% of institutions are dabbling in crypto in a way that makes sense to them. “The fear of missing out component is driving the institutional investors that don’t understand crypto but see the value of it. They see other investors who are in the know, say this is transformative. This is going to change the way finance is done for the next 20 to 50 years,” Urban pointed out. “Those hesitant to invest in crypto see their competitors moving in, and say I need to get into this.”
Urban disclosed that Galaxy Digital Trading, one of the biggest players in this space, has some exciting projects under development. “We are about to embark on a large technical project. We are going to roll out prime with the purchase of BitGo,” he said.
“On the fund side, we are always bringing out new products that our clients have asked for. If you look at the ecosystem, we are very active in all the mergers and acquisitions. We are very active in the mining side of the equation doing it through an ESG lens, so we are being responsible stewards of our planet,” Urban added.
For more on Ethereum and Bitcoin prices along with the institutional adoption of cryptocurrencies, please watch the full video above. Follow Michelle Makori on Twitter: @MichelleMakori
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
