Bitcoin's huge jump was foreseen by several experts in the cryptocurrency community.
Travis Kling, Founder and CIO of Ikigai Asset Management joins Yahoo Finance Live to discuss the future for Bitcoin and the crypto market.
Bitcoin should be worth $400,000 based on its limited supply as well as worth compared with gold, Guggenheim's Scott Minerd informed Bloomberg why Bitcoin should be valued higher.
The fundamental work reveals that BTC must be worth around $400,000. Minerd also stated the value is based upon the scarcity as well as relative assessment such as things like gold as a percentage of GDP.
His comments began the day Bitcoin crossed $20,000 for the first time.
The crypto property climbed 6%, to around $22,497, as of 8.22 a.m. GMT on Thursday, bringing its year-to-date return over 200%. Bitcoin climbed over the $20,000 level for the very first time in history only a day back, meaning that its price gained 12% in two days.
Bitcoin's supply is limited to 21 million, offering it its anti-inflationary hallmark. The token's scarcity along with the Federal Reserve's rampant money printing suggest its price ought to climb to $400,000, according to Minerd.
With the Federal Reserve expected to leave interest rates near zero for several more years, Bitcoin may continue to gain many new buyers. Well-known names are adding to bitcoin's mainstream appeal. A top executive at BlackRock (BLK) mentioned the cryptocurrency could take the place of gold, and payments giants Square (SQ) and PayPal (PYPL) have both embraced Bitcoin.