A stock and derivatives strategist at a global financial services company specializing in institutional trading believes that Bitcoin has a place in the investment portfolio. He set Bitcoin’s price target at $50,000 in 2021.

Bitcoin has a place in investor portfolios

BTIG is a global financial services company specializing in institutional trading, investment banking, research and brokerage services. According to its website, the company has more than 3,000 institutional and corporate clients worldwide. Its chief equity and derivatives strategist Julian Emanuel (Julian Emanuel) talked about Bitcoin in an interview with CNBC’s “Quick Money” earlier this week.

Someone asked him whether Bitcoin has a place in investors’ portfolios, not cash. The chief equity strategist replied: “It doesn’t have to be cash. Instead of 40% of the traditional 60/40 bond allocation.”

He explained: “If the Fed will not allow negative interest rates, and they have been screaming, and we start to see signs of inflation, then it is reasonable to expect that you may lose your bond portfolio in the foreseeable future.” This strategy The teacher continued: “When you combine the facts of the entire young investor, those companies that really actively promote technology stocks this summer and have 40-year investment prospects are bond substitutes. This is very, very, very wise.” Iman Newell added:

From our perspective, although the Fed continues to increase its balance sheet and US debt continues to rise, Bitcoin is a viable option.

He was then asked whether the company should consider holding Bitcoin on its balance sheet instead of cash equivalents.

“Of course, this is another option. We have seen some of them come to this conclusion. One of the facts in life is that in this zero-interest-rate cash environment, you really don’t get a return. Maybe it’s correct. ,” he replied. He emphasized: “I don’t know that I want to go so far, because that’s another personal company management point of view,” he said:

In a diversified portfolio, we do think there is a place for cryptocurrency.

Bitcoin’s target price in 2021 is $50,000

Emanuel’s price target for Bitcoin is to reach $50,000 by the end of 2021, which he believes is a reasonable price prediction.

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In order to arrive at this price prediction, he compared the price of Bitcoin with the Nasdaq 100 (NDX), which peaked in the dot-com bubble and then took several years to reach that peak again.

He wrote: “It took 14 years for NDX to surpass its parabolic “high”, and then it took another 6 years to rise further by 150%,” he added:

Bitcoin seems to be expected to surpass its parabolic “highest peak” in 2017 in just three years. If Bitcoin’s growth rate keeps pace with the past three years and the rebound is close to the NDX level, then $50,000 per Bitcoin is a reasonable price target for the end of 2021.

What do you think of Julian Emanuel’s views on Bitcoin? Let us know in the comments section below.

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