Bitcoin is set to continue its record-breaking rally and rise above US$80 000 as institutional investors pour more money into the crypto-backed exchange-traded funds, according to Binance CEO Richard Teng.
The launch of bitcoin ETFs in the US earlier this year has attracted institutional investors and new fund flows, Teng said at an event in Bangkok on Sunday, adding “we’re just getting started”.
Teng said he had earlier estimated the cryptocurrency would end the year at around $80 000, but now sees it exceeding that “with supply reducing and demand continuing to come through”. He reiterated the forecast was his personal view, adding the rally won’t be a “straight line” and the ups and downs will be good for the market.
The world’s largest cryptocurrency has surged 56% this year, reaching an all-time high of almost $73 798 last week. The rally has sparked concerns of a bubble among some investors, triggering a bout of volatility and selloff in recent sessions.
Teng took over as CEO after co-founder Changpeng Zhao stepped down in November following the company’s $4.3-billion settlement with US authorities.
There have been relentless inflows into US spot bitcoin ETFs since they were approved in January. More endowments and family offices are expected to step up allocations into bitcoin ETFs in the near term, Teng said. — Anuchit Nguyen, (c) 2024 Bloomberg LP