Van Eck said that Bitcoin would have half the market capitalization of gold, but it is hard to determine when that will occur. He stated that the institutional adoption has grown, as the value of the pioneering cryptocurrency will over time.
The CEO of Global Investments, Jan Van Eck, recently shared his general outlook on the market. He believes the price of Bitcoin (BTC) could reach USD 250,000 but notes that this could take a few years.
The executive said that buyers view Bitcoin as a complement to gold, which is the fast model. He commented it is almost impossible to vary that, saying that BTC will have half the market capitalization of the precious metal. He pointed out that it is hard to determine a time frame for that.
Concerning that opinion, Van Eck stated that the institutional adoption of the pioneering cryptocurrency has grown. He also explained that this should lead the value of Bitcoin to rise over time.
Van Eck recommends that investors include between 0.5% and 3% of Bitcoin in their portfolios.
The Price of Ether Reached a New Two-Year Low
The price of Ether (ETH) suffered its third-highest drop in 2022 after the falls in May and January. In a few words, it has been decreasing for the second month in a row.
That 21.52% loss in value has ended the hopes of those investors expecting Ether to be worth USD 3,000 in late June. That happened after it exceeded the USD 2,000 level, but many think that will not be the case.
From now on, the value of Ether could be seeking a long-term rally or another significant drop. However, investors should not think or dream of getting to USD 3,000 for a couple of weeks.
Overcoming the current market crash will be complicated, as it is the first time the price of Ether has turned negative in two years.
The Bitcoin Price Falls to USD 23,000
The price of Bitcoin has dropped to USD 23,000 due to increasing fears of new systemic risks. At the same time, financial markets are still under threat from the US Federal Reserve (Fed) campaign to halt inflation.
Bitcoin is trading at around USD 20,661 and has accumulated an 8.5% loss over the last 24 hours. While its daily trading volume is above USD 40.24 billion, its market capitalization is about USD 394.68 billion, according to CoinGecko.
There is growing concern that the Fed may have to intensify its campaign to tighten monetary conditions. They recently reported that the US inflation rate unexpectedly accelerated to a new four-decade high.
This year, cryptocurrencies and stocks have faced pressure to the downside from the central bank to withdraw excess liquidity from financial markets.
MicroStrategy Now Drops USD 1 Billion on Its Bitcoin Bet
Michael Saylor has an unrealized loss of over USD 1 billion on his Bitcoin holdings, as the price recently dropped to USD 22,900.
The CEO of MicroStrategy first bought Bitcoin in August 2020 at just under USD 12,000. The company increased its holdings to 129,918 BTC through subsequent purchases over the following months. Those coins are worth less than USD 3 billion against an investment of nearly USD 4 billion.
The founder of the business intelligence software company sought to clarify their obligations regarding their Bitcoin-backed loans on Twitter.
The shares of MicroStrategy dropped by 24.32% since they have led the sell-off in crypto-related stocks.
By Alexander Salazar
