The cryptocurrency market is on the verge of a bullish supercycle that would drive price growth for decentralized currencies, according to crypto asset manager Quantum Fintech Group founder Harry Yeh.
The value of the main cryptocurrency, bitcoin, could reach $400,000 this year, which would be a jump of almost 900 % from the current level he claimed the expert to Bloomberg.
According to Yeh, the driving factor for growth is that the Federal Reserve, the US central bank, will continue with money injections contributing to inflation, so investors will continue to seek protection in cryptocurrencies.
The specialist considers that the crypto market is still in the “teething stage” and what is sighted now is similar to the bull market of 2017.
“We meet now in the middle of a bull market“, he pointed out before specifying that the current situation is “somewhat more unique” because it has “many stable currencies”, crypto assets whose value is linked to the dollar, another currency or raw material.
“So we’re looking at what could be a supercycle where the widespread adoption of cryptocurrencies thanks to stablecoins,” he said.
Bitcoin is currently trading above $43,000. This month its value fell below $40,000 for the first time since last August. The all-time high of 68,789 was recorded in November 2021, according to CoinMarketCap.