Rick Rieder has stated that the price of Bitcoin would rise significantly. The CEO, in an interview with SquawkBox, revealed that he doesn’t see the popular crypto declining because of its convexity. He further predicted the recent fall in prices was only temporary and a sign of great things to happen in the market.
Speaking to SquawkBox, the CEO said that one reason he owns a fraction of Bitcoin is he thinks that more people will venture into space over time. He shared more reasons, saying that he loved volatile assets like Bitcoin because of its convexity.
Bitcoin Can’t Compete With Other Assets
Although the Bitcoin enthusiast publicly admitted his love for Bitcoin, he said that assets like it would never compete with bonds or stocks. Nevertheless, he thinks that Bitcoin has what it takes to become a speculative tool that could hold high value.
Crypto analysts state that Rieder’s remarks could cause a spike in BTC prices in the upcoming days. It has been a common trend that anytime a crypto enthusiast makes a positive comment about digital currencies, the prices usually shoot up. Elon Musk is a typical example, as he had done it twice already. The Tesla billionaire’s comments on Bitcoin caused its price to rise around Q2. He did it again on Doge, and prices went up. With Rieder, a pattern has been established, suggesting that BTC will break the $47k barrier.
Currently, BTC is trading at a relative comfort zone of between $45k – $47k. Experts analyze that the BlackRock CEO’s positive BTC comment could push BTC to attain a new daily high of above $47.3k to $48k, gaining between $2k and $3k. However, the price could reverse on unforeseen incidents, which no investor is praying would happen.
On Tuesday, the BTC recorded one of the sharpest declines in September, jumping from $53k to below $43k within an hour. That drop accounted for nearly 20%, causing so many investors to record losses in the market. While some investors lamented their losses, wise buyers capitalized on the opportunity to acquire some BTCs. El Salvador, the first country to adopt BTC as a legal tender, bought over 200 BTC during the dip for $10.2M.
Recently, BlackRock announced that it held over $382M in BTC mining stocks. This organization was once meticulous about BTC, but it seemed that the company had seen the future in cryptocurrency and decided to invest in it.