“First off, you could argue we have had a proper correction in bitcoin, it has had a 50 percent pull-back at one point, which is healthy. But we have still not seen the full effect of the futures contracts,” he told CNBC.
Van-Petersen correctly predicted bitcoin’s rally at the start of last year, forecasting in December 2016 that the cryptocurrency would reach $2,000 in 2017. The digital currency, which at the time was trading below $900, blew past the $2,000 figure in May.
The Saxo Bank analyst said rival digital coins could also gain significantly, adding that ethereum is likely to outperform bitcoin this year.
“Ethereum came after bitcoin, it has a more unified leadership than bitcoin,” he said. “They seem to be a bit further along the way in regards to forming the solution to scaling issues. And you can see transactions on their side eclipses transactions across other cryptos.”
A noted bull who owns various cryptocurrencies, Van-Petersen said bitcoin will be driven by a larger uptake of institutional investors and futures contracts. It tends to trade around a certain level then “re-rates,” he added.
“I wouldn’t be surprised if it’s something we are seeing. It’s kind of building a foundation, then will re-rate a bit higher.”
Bitcoin, the top digital currency, saw a big sell-off this week along with its rivals, including ethereum and ripple. Bitcoin lost nearly half its value from record highs, trading at $10,776 on Wednesday.
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