Recently, analysts at CNBC stated that Bitcoin will most likely reach its $1,000 milestone before the Dow surpasses 20,000 – and CNBC looks likely to be accurate once more.
The Dow Jones Industrial Average is set to reach 20,000 points, which is considered by investors and the Wall Street as a major milestone. In the beginning of 2016, the Dow opened at around 17,150 points. Throughout the year the Dow continued to increase but in the final months, it stumbled, failing to cross the 20,000 mark.
The Dow declined further as the new year approached, dropping by another 57 points over the past 24 hours. Bitcoin in comparison has maintained its upward trend, rising dramatically as the new year approached. On Jan. 1 Bitcoin reached $980, coming close to its $1,000 milestone.
CNBC’s message to investors: Forget Dow, follow Bitcoin
CNBC has been one of the few mainstream media outlets which have provided extensive coverage on Bitcoin over the past year. It was also the first mainstream media outlet to cover Bitcoin’s price rally earlier this month, as CNBC’s Brian Kelly appeared on national TV to outline the reasons for the rise of Bitcoin.
On Dec. 29, as mainstream investors and Wall Street traders anticipated the Dow to hit 20,000 points, CNBC sent a message to investors and traders globally. CNBC’s Jeff Cox stated: “Forget about Dow 20K: Bitcoin’s about to hit $1,000.”
Nick Colas, chief market strategist at Convergex, also said in an interview with CNBC that Bitcoin is rapidly gaining momentum amid global economic instability as people are desperately searching for alternatives to store and protect their wealth.
Colas emphasized that Bitcoin is one of the only currencies or stores of value that has the ability to guarantee investors and traders a safe haven asset like protection. Because of the decentralized nature of Bitcoin, Colas stated that the price of Bitcoin will continue to climb and reach $1,000 shortly before the Dow hits 20,000.
“It is one tool that many people around the world use to try to preserve wealth. Bitcoin has gone from being just a nerd’s version of gold years ago to now being another thing people do to try to hold onto their wealth,” said Colas.
He also noted that the price of Bitcoin, when the currency gains real mainstream market dominance and adoption, will truly be colossal in a period wherein mainstream users can simply walk into a coffee shop to purchase coffee solely with Bitcoin.
“It will be mainstream when you can walk into a bank and order a Bitcoin account. We’re not close to that yet,” Colas added.