The head of Defiance ETFs says she is “completely bullish on bitcoin.” Noting that it is a “good time” to get into the cryptocurrency, she explained why she believes the price of bitcoin will reach $100K.
CEO of Defiance ETFs Bullish on Bitcoin
Sylvia Jablonski, managing director, chief investment officer and co-founder of Defiance ETF, explained her optimism about bitcoin despite recent price declines in an interview with CNBC on Thursday.
Defiance ETFs is an exchange-traded funds (ETFs) sponsor and registered investment advisor focused on thematic investing.
Jablonski told the outlet:
I remain completely bullish on bitcoin. I think short-term activity is just noise.
She noted: “It looks as though, in terms of what we’ve seen for the last six months to a year or so, is that bitcoin is correlated with risk assets and equities specifically.”
The executive explained that when investors see the crypto market rally for a few days, they dive back into bitcoin, ether, and some of the other cryptocurrencies. Similarly, “when you see pullbacks, they seem to hit bitcoin as well,” she pointed out.
Regarding bitcoin as an inflation hedge, she admitted that “a couple of years ago, a lot of us thought that bitcoin was going to be this great inflation hedge and it was going to react in a similar way to gold and it was going to be this safe-haven inflation trade, but I think it’s trading more like a Nasdaq 100 stock than it is like an inflation trade.”
Jablonski predicted, “In the short term it will be sideways volatility, it will be range bound price action, but longer term I still expect bitcoin to be in that $100,000 camp. before I expect it to reach zero. The Defiance ETF boss explained:
I still think it’s kind of a good time to get in.
Jablonski described, “We have to think about it like we do with the market, so if I think about what’s happened with some of the broad-based indices, and again using the Nasdaq as an example, at some point given, we have reached a moving average of 200 days. and the Nasdaq was very much in bearish territory, 20% or more below all-time highs.
She emphasized:
Bitcoin mirrored that, and here we are getting off that 200-day average on Nasdaq and we are getting off our lows on bitcoin as well.
“So I think we definitely have a negotiable bottom. I think we’re going to have these rallies in the short term, but I don’t think that’s it. I think the market has a bit more to bear in terms of range-bound volatility. There is also a psychological aspect to headwinds,” she added.
The executive continued: “You have [the] Russia-Ukraine [war], you have inflation, you have the Fed raising rates, and that just keeps investors holding on to their cash, which is actually a huge mistake in the end because that locks in losses.”
Jablonski added, “But I think once they kind of get past that psychological aspect and we kind of see the fundamentals of economics, cryptocurrency and bitcoin, you’ll start to see it. see rally, so I don’t think we’re going to get that forehand right away.
I think you’ll get some range-bound volatility now between $46,000, $47,000, and $50,000. I think kind of down the road we’ll see that rally up to $100,000.
At the time of writing, bitcoin is trading at $46,075 based on data from Bitcoin.com Markets.
