The bitcoin price last night climbed back over the closely-watched $20,000 per bitcoin level but has since dipped back below it (despite being branded “the biggest Ponzi scheme in human history”). Ethereum has meanwhile led the major crypto market higher, helping smaller coins BNB
Now, former stockbroker Jordan Belfort, whose financial crimes through the 1990s inspired the movie The Wolf of Wall Streethas issued a bullish bitcoin price prediction—claiming the bitcoin price will “almost certainly” climb over the next three to five years.
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“If you take a three or maybe five-year horizon, I would be shocked if you didn’t make money because the underlying fundamentals of bitcoin are really strong,” Belfort told Yahoo Financeadding that “with reasonable luck” investors will “almost certainly make money” over a period of just two years.
The bitcoin price has suffered an almighty crash over the last six months, losing around 70% of its value as the US Federal Reserve leads central banks around the world in raising interest rates and beginning to type pandemic-era stimulus measures in order to fight soaring inflation.
Smaller cryptocurrencies have seen even steeper declines, with the price of ethereum, BNB, XRP, solana, cardano and dogecoin dropping even further.
Bitcoin’s crash in the face of decades-high inflation has damaged its reputation as “digital gold” that had emerged in recent years, however, Belfort expects bitcoin to eventually trade in a similar way to gold.
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“It doesn’t surprise me one bit that [bitcoin] is doing that and it would be more of a surprise if bitcoin was already trading as an inflation hedge because it is still very nascent,” Belfort said.
“There is no real institutional ownership in bitcoin, for instance, you don’t have a teachers pension fund owning bitcoin for a ten-year hedge, it’s not like that yet.”
Over the last two years, the bitcoin price has rocketed higher, soaring to almost $70,000 per bitcoin last year and mirroring high-growth technology stocks that fueled a huge stock market rally.
“[Bitcoin] has a limited supply and as inflation keeps rising there will come a time when bitcoin will start to trade more like a store of value and less like a growth stock,” Belfort said.