Hedge fund manager Marc Larsy says bitcoin $40K is possible

Bitcoin is back, apparently. After months in the doldrums, the No. 1 digital currency surged higher Tuesday and has continued its run Wednesday.

As recently as Saturday, interest in bitcoin hit an eight-month low with 24-hour volume falling below $3 billion for the first time since Nov. 7, 2017. However, after Tuesday��s surge, which saw the world��s biggest digital currency climb more than 10%, volume more than doubled Saturday��s number and reached the highest level since May 24.

According to Coinmarketcap, $5.96 billion of bitcoin changed hands on Tuesday alone.

Bitcoin trading volume

The price of a single bitcoin BTCUSD, +1.67% �last changed hands at $7,450.10 on Wednesday, up 1.9% since Tuesday��s price at 5 p.m. on crypto exchange Kraken.

Read: Brutal bear market for bitcoin doesn��t stop record inflows to this digital asset firm

Hedge fund manager: $40,000 possible

On the back of Tuesday��s rally, Marc Larsy, the Moroccan-born hedge fund manager, told CNBC that the price of the No. 1 digital currency would rise as more markets open their doors to digital assets, adding that he has 1% of his personal money invested in bitcoin.

When asked for a price prediction, Larsy said bitcoin could reach somewhere between $20,000 and $40,000.

Larsy, the co-founder of Avenue Capital Group and owner of the Milwaukee Bucks of the NBA, said user adoption would fuel a rally that could see investors secure healthy returns. ��As it gets more into the mainstream and as more markets end up allowing it to trade... to me that��s more of the bet,�� Larsy told CNBC��s Squawk Box.

Futures on track for another winning day

For the most part, altcoins began Wednesday in the green. Bitcoin Cash BCHUSD, +2.21% �is the best performer, up 3.1% at $872.30, Litecoin LTCUSD, +2.18% has climbed 2.6% to $91.19 and Ripple��s XRP coin XRPUSD, +0.85% is trading at 52 cents, up 1.4%. Ether ETHUSD, -1.42% �is the only one trading in the red, down 0.6% at $496.89.

Futures are on track for another winning day. The Cboe Global Markets Inc. for July XBTN8, +0.65% is up 1.5% at $7,440 and the CME Inc. July contract BTCN8, +1.30% is trading at $7,460, up 2.2%.

CryptoWatch: Check bitcoin and other cryptocurrency prices, performance and market capitalization��all on one

Aaron Hankin

Aaron Hankin is a MarketWatch reporter in New York who covers cryptocurrency and financial markets.

We Want to Hear from You

Join the conversation

Comment Quote References BTCUSD +122.20 +1.67% BCHUSD +18.70 +2.21% LTCUSD +1.94 +2.18% XRPUSD +0.00 +0.85% ETHUSD -7.09 -1.42% XBTN8 +47.50 +0.65% BTCN8 +95.00 +1.30% Show all references MarketWatch Partner Center