Gene Munster, the Managing Partner at venture capital firm Loup Ventures, is the latest financial expert to discuss Bitcoin’s recent rally, the current market condition, and his future prediction for the asset.
During a CNB CSquawk Box interview today, Munster was quizzed about his views on Bitcoin’s pros and cons based on the current market condition.
Munster noted that it is difficult to predict the asset’s downside in the near term adding that it is not a “good bet” to speculate on Bitcoin because of the big moves.
However, he believes that the recent events that have seen more institutional investors flock into the crypto space and purchasing large amounts of BTC are a sign that the asset is moving “in a credible direction.”
He added that the idea that institutional investors are showing interest in the cryptocurrency is a sign that people should own bitcoin as the asset would continue to move higher over time.
In addition, Munster said that Bitcoin is instrumental in the evolution of the global payment system, causing a decline in banknotes’ demand.
With BTC surpassing its all-time high (ATH) in the previous week on some crypto exchanges, and more institutional investors flocking into the industry, the asset class has continued to gain traction in the financial sector.
Bitcoin became an important topic of discussion this year, when the asset showed resilience over other financial instruments, including gold, despite being affected by the coronavirus (COVID-19) pandemic.
The pandemic which affected world economies made the cryptocurrency to trade below $4,000 in March. Since then, the cryptocurrency has recorded significant growth and is currently trading at $19,216.
Bitcoin’s ability to wither the storm ushered in by the COVID-19 pandemic has led to massive interest in the assets from institutional investors.