Kay Van-Petersen, an analyst at Saxo Bank, correctly predicted Bitcoin’s (Bitcoin) rally in early 2017, now says the cryptocurrency could hit between $50,000 and $100,000 this year, CNBC reported.
"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," Van-Petersen said.
Although Bitcoin has been trading sideways since the start of the year, the Saxo Bank analyst said that Bitcoin tends to trade around a certain level then "re-rates".
"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," he said.
Van-Petersen considers, however, that Ethereum (ETH/USD) is likely to outperform Bitcoin in 2018.
"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."
Bitcoin will need to rally over 635 percent from Tuesday's highest price of $13,601.43 to reach reach Van-Petersen’s predicted level of $100,000.