Philip Nunn, the chief executive officer of Manchester-based investment firm Blackmore Group, is confident in his bullish speculation that the bitcoin price will hit $60,000 this year.
Nunn who also gave a word of advice to initial coin offering (ICO) projects, noted that he is confident that Bitcoin will hit both $6,000 and $60,000 by the end of this year. He explained at KPMG’s Tech-Manchester that we are nearing the former.
He went on to state that:
“The prediction was based on, first of all, market volatility which we’re experiencing at the moment; I think that’s really apparent. I absolutely stand by my prediction.”
But the CEO went ahead to add that, the money that presently exists in the crypto space came from the public and not institutional investors, which he claims “it’s all about market sentiment.” This means that a rise of negative news can affect the market and that the industry is not large enough “that there’s market manipulation.”
Last month, the US Department of Justice (DOJ) has initiated a criminal investigation into market manipulation, a decision that billionaire investor and former hedge manager Mike Novogratz called a “good thing.”
It is claimed that Nunn discusses with financial institutions including banks and hedge funds frequently and disclosed they “all want a piece” of the crypto space yet do not have an entry point as presently available vehicles are not suitable.
“There’s no entry point at the moment,” he said. “If you’re a pension fund with £5 billion in your pot and you want to take a 5 percent position in crypto you’re going to really piss your investors off because of the volatility in the market.”
The entrepreneur was later challenged with a claim that states the price of bitcoin and other cryptocurrencies will go through a 90 percent correction that’s is expected to lead to a “massive market wipeout” within a year, released by investment bank GP Bullhound.
According to the reports, although the correction will destroy several cryptocurrencies and related firms, the lucky survivors will experience an extraordinary rally. Although Nunn sees “a little bit of sensationalism going on” with the report, he recognizes that several projects are going to be wiped out.
According to him, cryptocurrencies such as bitcoin, ethereum, and litecoin are “the fabric of the industry,” while the other 1,600 tokens are “an alternative to venture capital money,” meaning most will disappear while those who survive may be projects that increase like present tech titans like Google and Facebook did.
“The reality is nobody knows how many will fail. This is different, because you’ve got guys who are raising $50 million where they’d usually raise $2 million from VCs so maybe more start-ups will succeed because they’ve got a war chest and a lot more running room.”
Moreover being bullish on bitcoin, Nunn is also a supporter of blockchain technology in general. According to BusinessCloud, he believes it will affect every existing industry and “the whole world,” as we are shifting “from an internet of information to an internet of value.”