Standpoint researcher Ronnie Moas raised his price target for bitcoin from $5,000 to $7,500, according to CNBC. Moas raised his price target after bitcoin reached the new all-time high this weekend.
Moas his belief that hedge funds and more traditional investors are just starting to invest in bitcoin. Many expect that the CFTC’s decision to authorize the creation of the first clearinghouse for bitcoin options and swaps will hasten adoption by hedge funds and other more sophisticated traders.
"What's happening is the floodgates are opening," Moas, founder of Standpoint Research, said in a phone interview with CNBC on Monday.
"I believe there are hedge funds and very deep-pocketed individuals going into this now, really hundreds of millions of dollars."
The longtime stock analyst first explained his bullish case in a research report published last month.
Moas also believes that central banks will soon discover bitcoin’s usefulness as a reserve asset.
As institutional investor interest in bitcoin grows, Moas expects digital currencies to become part of "strategic reserves" and "asset allocation models in the near future." He also said people in foreign countries will likely want to buy digital currencies as a more stable alternative to their national currencies.
"You can't look at this as a normal situation," he said. "We're in an industry that will probably go from $140 billion to $2 trillion and the bitcoin price will probably move with that."
Amazingly, Moas claims 100% of his investments are in digital currencies, with the majority in bitcoin and Ethereum, according to CNBC.
Moas call comes on the heels of Goldman Sachs' chief technician Sheba Jafari increased her forecast for Bitcoin to over $4800...
Now that the market is getting closer to reaching this level, it’s going to be important to take note of any/all signs of trend exhaustion.
There is of note a 2.618 extension which runs as far as $4,827.
Once a full 5-wave sequence is in place, the market should in theory enter a corrective phase.
This can last at least one third of the time it took to complete the preceding advance and retrace at least 38.2% of the entire move. From current levels, that would measure out to ~2,221.
Finally, we note Moas' conclusion that, if anything, his estimates are conservative.
"Any way that I look at these numbers, my forecasts are looking conservative. It looks to me as though we are at the same point in the adoption curve as we were in 1995 when we went from one million internet users to ten million. The following year the Netscape browser came online and we went from 10 million users to hundreds of millions of users overnight.
I expect that within a couple of years we will have between 50 and 100 million cryptocurrency users -- up from approximately ~10 million today. We only have 0.15% market penetration right now -- if that goes to 2% or 3% we will get to the $50,000 price target that I set at the beginning of July."
Moas maintains his view that the digital currency could reach $50,000 by 2027.