While investors and punters seem cautious over Bitcoin fluctuations, some analysts appear to be very confident that the number one cryptocurrency will reach new levels before the year is done.
During the first three months of 2018, Bitcoin has lost most than 50% of its value. The coin started at the level of $15,000 in January and is currently trading at slightly below $10,000. It does make one wonder why analysts have such a positive outlook on valuation.
Analysts argue that the cryptocurrency may have started at the high of $15,000 but it has also seen and been past the low of $5,900 during the year. Bitcoin dropped to the low level during the second week of February when negative news concerning regulations severely shook the investor confidence.
One analyst was particularly bold. Kay Van-Peterson at Saxo bank predicts that the Bitcoin is very likely to reach $100,000 by the end of 2018. Peterson had said in 2016 that Bitcoin would reach $2,000 in 2017 while the digital coin was trading at less than $1,000. His prediction proved right when Bitcoin climbed past $2,000 in the mid of 2017.
Effects On Bitcon Valuation Due To Alternate Currencies
Cryptocurrency experts argue that Bitcoin would have been doing far better if the alt coins had not saturated the market. Ethereum, Ripple and Bitcoin cash took major investments away from the biggest cryptocurrency and price analysts had not taken these alternate coins into consideration.
Supporters of Bitcoin feel that the alternate currencies have had their day. Both Ethereum and Ripple are trailing below their regular trading levels due to government regulations surrounding derivates. The troubles in alternative currencies have lifted morale for the Bitcoin investors who feel that the price would rise for the biggest cryptocurrency.
Bitcoin Historical Price Trend
Many analysts are basing their Bitcoin predictions on historical trends. The coin has shown major appreciation in value year-to-year. Bitcoin was trading at roughly $100 dollars at the end of 2013. The price of the coin rose ten-fold in 3 years when it went past $1,000 for the first time in the beginning of 2017.
Bitcoin price increase ten-fold and it hit $10,000 in the next 12 months. Given this historical trend and the current level of interest in digital currency, it doesn’t appear too unlikely that the price could rise ten-fold once more in the next 6 to 8 months.
What Is Holding Bitcoin Back?
The number one issue that is holding the coin back and suffocating the markets right now is the lack of certainty about regulatory control. The South Korean legislators have hinted at enforcing regulation to control cryptocurrency trade without explicitly stating that they are looking to ban crypto trade in the country.
The US regulators, the SEC in particular, has also mentioned that they are looking to enforce similar levels of control on Bitcoin trade that are in place on the stock exchange.
Meanwhile, Japan clamped down on two major cryptocurrency exchanges over the last weekend.
Japan and U.S. have been the two biggest markets for Bitcoin and cryptocurrency trade. The uncertainty and regulatory pressure from these two major economies are the major cause of the slump in the market. Once this pressure is removed, we can certainly hope to see the Bitcoin soaring once more, as predicted.
Charlie Shrem is a Bitcoin pioneer, a social economist and digital currency trader. His work in this field is legendary. In 2011, at the dawn of the crypto era, he founded BitInstant, the first and largest Bitcoin company. In 2013, he founded the Bitcoin Foundation and serve as its vice chairman. Since then, Charlie has advised more than a dozen digital currency companies, launched and managed numerous partnerships between crypto and non-crypto companies, and is the go-to guy for some of the world’s wealthiest entrepreneurs. In short, he is the ultimate insider at the epicenter of the crypto universe.
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