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Bitcoin (BTC) recently set a new all-time high on Tuesday as the traded above $68,000 for the first time ever. However, a trader believes that the world’s largest cryptocurrency by market cap still has room to grow and could reach as high as $150,000.
In an interview with CNBC’s “Trading Nation,” Inside Edge Capital Management founder Todd Gordon was asked if he thinks Bitcoin could still reach above $100,000 this year considering that there are only two months to go before year-end. Gordon previously predicted that BTC could reach $100,000 this year.
The trader admitted that he is not sure if BTC could reach $100,000 by the end of 2021 but he still believes that Bitcoin could even go higher than that in the long run. “We actually don’t have resistance until about $125,000 to $150,000, so … I do think it’ll get there,” Gordon said.
Gordon recommended that investors should get exposure in crypto but cautioned that they should allocate only a small portion of their portfolios in digital currencies. “Crypto is part of my portfolio, I hold about three percent of my portfolio in crypto and various coins,” he explained. “I think it should be part of client portfolios but a small part.”
While crypto has the potential for huge returns, price volatility is a major concern. “I’m bullish, but volatility is so extreme, please be careful and understand what you’re dealing with here,” Gordon added.
Aside from Bitcoin, the trader also owns Ether (ETH) citing the positive developments related to the token. “I really like Ethereum… with all the adoption of NFTs and these gaming subgroups and the metaverse, especially with what’s Facebook is doing,” Gordon revealed, adding that it’s his second-largest holding.
Chantico Global founder and CEO Gina Sanchez, who is also the chief market strategist at Lido Advisors, noted that the Fed might have helped Bitcoin’s recent rise. “Much of its recent momentum is on the back of Fed Chair Powell’s statement that he would not consider a ban currently on crypto,” Sanchez said during the same interview. “I think that sort of sparked the recent rally. “
However, she also pointed some trends that could potentially stifle crypto’s performance down the line. “As the economy continues to reopen and the numbers start to heat up, at some point we will see the Fed stepping back,” she explained, which could reduce liquidity in the markets.
CBDCs might also compete with private cryptos such as Bitcoin and Ether. “Central bank digital currencies have the potential to have an edge when it comes to regulation and that’s the big unknown right now with crypto,” Sanchez said. “It can create big winners and losers.”
