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The list of those on Wall Street calling for a big 24 months in crypto is growing.
“We assume in our analysis [that] the price of bitcoin will reach $225,000 by the end of 2026,” Benchmark Company analyst Mark Palmer told Yahoo Finance executive editor Brian Sozzi during his Opening Bid podcast on Yahoo Finance (see video above or listen below).
Palmer is particular bullish on Michael Saylor led Microstrategy (MSTR) and Mike Novogratz led Galaxy Digital (GLXY.TO) as players on his bitcoin prediction.
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Palmer has been covering the crypto and fintech space for more than a decade, and has seen the industry’s many ups and downs. But he says this time is different, pointing to many bad actors such as FTX’s Sam Bankman-Fried being flushed from the system and the potential for growth under incoming president Donald Trump.
“We are hearing about various appointments in the cabinet who would be supportive of crypto,” said Palmer. “It’s really a sea change relative to what had been before when, frankly, the SEC and other agencies were hostile to the crypto space.”
The new administration has mentioned appointing a crypto czar to oversee crypto-related issues and initiatives.
“It’s not yet clear exactly what that role could entail,” said Palmer. “But just the fact that there would even be someone who would be focused on making the United States a leader in crypto, bitcoin mining, and other areas President Trump has talked about is a sea change.”
The warming sentiment toward crypto also includes recent investments from entities that typically favor the more traditional stocks and bonds options. In May, Wisconsin’s pension fund added bitcoin to its holdings by purchasing more than $160 million of shares in two new funds approved by regulators earlier this year.
“The fact that we are seeing increased institutional adoption of bitcoin is key here,” said Palmer.
It is understandable that an increasing number of investors have piqued interests in cryptocurrencies.
Bitcoin has continued to out-perform since the Nov 5 election, climbing to record highs of around $100,000. Palmer says investors he talks to are also preparing for halving.
“Halving” is a process that occurs every four years as a means to rebalance the cryptocurrency. According to blockchain protocol, halving cuts the rewards paid out to bitcoin miners in half.
“This is part of the design of bitcoin, which makes it counter inflation,” said Palmer. “Those who are big advocates of bitcoin point to it as the antithesis of what we see with the Federal Reserve and other government central banks printing money as a means of addressing their needs.”
