Frank Holmes, CEO/CIO of US Global Investors, believes Bitcoin and Ethereum could reach $80,000 and $3,000 respectively in 2021. He also sees the possibility of Bitcoin dropping to $20,000 and Ethereum dropping to $500. This wide spread is derived from a philosophy he calls the DNA of volatility.
DNA of volatility
According to Holmes, each asset class has its own DNA of volatility, or the typical percentage of price fluctuation over a period of time. He finds it particularly intriguing when two different assets have similar volatilities. In this interview, he points out that the DNA of volatility of Tesla is the same as Ethereum
The stock market, the S&P 500, is 1%. Gold is 1%. Gold stocks are 2%. But Tesla is 5%. Ethereum is 5%. Bitcoin is 5%.
So why do these two seemingly disconnected assets have similar DNAs of volatility? Holmes believes that a higher range of volatility is an indicator of a disruptive asset. Tesla is disrupting the car industry while cryptocurrencies are disrupting the global financial sector. Although these assets inhabit wholly different industries, they are both agents of change, which creates similar uncertainty and volatility in price.Title: WATCH: Gold bug Frank Holmes’ 2021 volatility ranges: $80K Bitcoin and $3K Ethereum?
Sourced From: cointelegraph.com/news/watch-gold-bug-frank-holmes-2021-volatility-ranges-80k-bitcoin-and-3k-ethereum
Published Date: Fri, 29 Jan 2021 18:36:05 +0000
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