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 (ETFs), according to Binance chief executive officer Richard Teng.
The launch of Bitcoin ETF in the United States earlier this year has attracted institutional investors and new fund flows, Teng said on Sunday (Mar 17), adding “we are just getting started”.
Teng said he had earlier estimated the cryptocurrency would end the year at around US$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 will not be a “straight line” and that the ups and downs will be good for the market.
The world’s largest cryptocurrency has surged 56 per cent this year, reaching an all-time high of almost US$73,798 last week. The rally has sparked concerns of a bubble among some investors, triggering a bout of volatility and sell-off in recent sessions.
Teng took over as CEO after co-founder Changpeng Zhao stepped down in November following the company’s US$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. BLOOMBERG
