Bitcoin Could Hit $210,000 By Year-End, Says Presto's Peter Chung

Peter Chung, Head of Research at Presto, a prominent quantitative trading firm, has made a bold prediction that Bitcoin could reach an all-time high of $210,000 by the end of this year. This forecast was made during an interview with CNBC on April 28. The bullish outlook is driven by two primary factors: increasing institutional buying of Bitcoin and rising global liquidity. According to Chung, these elements are expected to propel Bitcoin's price to unprecedented levels.

Chung acknowledges that Bitcoin has faced challenges in the past, but he views these corrections as necessary steps toward mainstream acceptance. He describes Bitcoin as a dual-natured asset, acting as a "risk-on" asset during confident market conditions but transforming into "digital gold" under financial stress. This duality is crucial in understanding Bitcoin's role in the financial ecosystem.

Historical data supports Chung's optimism. During times of crisis, such as the Russia-Ukraine war in 2022 and the collapse of Silicon Valley Bank in 2023, Bitcoin's performance has been closely scrutinized. While Bitcoin did not surge like gold during recent market tensions, Chung believes it will "catch up" and outperform by the end of the year. This response to global crises highlights Bitcoin's evolving role in the financial system.

The $210,000 prediction is not arbitrary. Chung first discussed this target in January, using the Market Value to Realized Value (MVRV) ratio. This metric compares the current market value of Bitcoin to the average price of coins that have moved. Presto estimated Bitcoin’s realized value for 2025 and applied a historical 3.5x multiple to arrive at their target. Financial analysts often use this ratio to identify market extremes and potential turning points.

Additionally, the rising activity of "whales"—large crypto holders—is seen as a sign of high market confidence. These investors continue to purchase Bitcoin at current prices, believing that if this trend continues, BTC could surpass the current projection, potentially reaching $300,000 to $500,000. This optimism is shared by other experts, including Robert Kiyosaki, the author of "Rich Dad Poor Dad," who predicts that Bitcoin could reach $180,000 to $200,000 by 2025 and $1 million by 2035.

While these forecasts indicate significant optimism in the crypto markets, it is important to remember that cryptocurrency prices remain highly volatile. Despite thorough analyses and trends, the prices of cryptocurrencies can fluctuate dramatically. This volatility underscores the need for cautious optimism and a thorough understanding of the market dynamics.