Bitcoin will be the world’s currency and “you have to think it’s going to infinity,” said Jesse Powell, the CEO of the cryptocurrency exchange Kraken, in an interview Bloomberg on Wednesday.
Kraken — San Francisco-based cryptocurrency exchange is reportedly in talks about raising new funding. This would eventually double the company’s valuation to more than $10 billion, said Bloomberg a report.
National currencies are “already showing extreme signs of weakness,” Powell said. He continued to explain the world would soon start considering Bitcoin. He said, “The true believers say it’s going to the moon and will eventually be the world’s currency.”
Nevertheless, Bitcoin price might suggest the contrary. The price of the leading digital currency fell from $58,000 to $45,000 last week. Currently, it’s trading $48,505 as of this writing. Bitcoin’s price plunge followed a severe correction in the cryptocurrency market which resulted in massive losses to investors. However, the largest cryptocurrency by market capitalization is still up 70% year-to-date.
“In the near term, people see it surpassing gold as a store of value. I think $1 million as a price target within the next 10 years is very reasonable,” Powell said of bitcoin.
More institutional interest in a digital currency means more regulations
One of the key factors driving Bitcoin price to new all-time highs every time is the large institutional interest in the digital currency. In recent months, popular financial institutions invested heavily in the digital token.
For instance, MicroStrategy lifted its debt offering in February to $900 million to invest it in Bitcoin. Meanwhile, Morgan Stanley said it is considering a thrilling $150 billion investment in digital currency. While Tesla (NASDAQ: TSLA) invested $1.5 billion in February.
Nevertheless, the price of Bitcoin plummeted directly after comments from Gary Gensler — the nominee to lead the Securities and Exchange Commission (SEC). Gensler said there will be a confirmation hearing “to make sure crypto markets are free from and manipulation.”
Ironically, Gensler is teaching on the subject of cryptocurrencies at MIT. Currently, he is an advocate for Bitcoin and other digital currencies.
The market is currently is showing volatility “because if you’re selling everything except for energy, that’s very risk-off,” said Arthur Hogan, the chief market strategist at National Securities Corp. “It really doesn’t matter whether you are Bitcoin or Ark or semis or banks — everything’s being thrown over the transom.”