Exciting articles several times a month
13 April 2018
Fluctuations in the price of Bitcoin and volatility of the overall cryptocurrency market are buzz words constantly circulated in the media sources with financial agencies of some governments warning consumers against risks associated with investments in tokens and coins. Negative forecasts, however, are balanced by optimistic sentiments and views offered by major Wall Street companies and analysts.
At the end of 2017 Saxo Bank published its “Outrageous predictions for 2018”, where the bank speculated that Bitcoin may experience an impetuous growth in 2018 to the groundbreaking benchmark of $60,000 per one BTC, and some time after that point it will drop dramatically to the $1,000 level right into 2019. Yet, Steen Jakobsen, a chief economist at Saxo Bank, made a reservation, saying that the report should be viewed as possible leaps in the development of certain events and market ecosystems, it should not be taken as the official point of view that Saxo Bank is holding.
In January Kay Van-Petersen, an analyst from Saxo Bank, expressed his view saying that she would not be much surprised if Bitcoin took off to the levels approximately between $50,000 and $100,000 during this year. She noted that Bitcoin may go up and after fall sharply down standing flat for some period before possible setting back to high value.
While reasoning of Saxo Bank and its analysts is based on the assumption that the US economy may suffer high inflation rates with the US dollar appreciation, which would drive investors from conventional markets to new financial instruments, actual state of affairs demonstrate that investors just try Bitcoin and other cryptocurrencies given substantial increase in their prices, and the economy along with the US dollar remain relatively stable.
Thomas Lee, co-founder and head of research at FundStrat, speaking about Bitcoin, forecasted a positive dynamics for the cryptocurrency at the beginning of the year. He made an analysis of 22 depreciations in the price of Bitcoin, exceeding 20%, and came to a conclusion that the recovery period usually takes 1.7 times the duration of the slowdown in the market. Still he further added that the market is bullish. Lee believes that by July this year the cryptocurrency will set back to its high values.
“We expect bitcoin’s major low to be $9,000, and we would be aggressive buyers around that level. We view this $9,000 as the biggest buying opportunity in 2018.”
Michael Jackson, a General Partner at Mangrove Capital Partners and a former COO of Skype, expressed a hopeful attitude discussing the future of Bitcoin, admitting that the prices will go up again.
Jackson noted: “The price has been driven by speculators and they suddenly got cold feet but there’s considerable effort going on behind the scenes, including new underlying technology that is powering faster transactions,
“Meanwhile, regulators seem open-minded and are now working to eliminate the risks for consumers. So I see no reason why bitcoin shouldn’t fulfill its dream. And if it does then recent price falls will appear trivial”.
Tone Vays, an expert in Economic Trends, Trading and Risk Analysis, with a major experience of an analyst for Wall Street and currently a leading cryptocurrency specialist and blockchain advisor, made an assumption that the fluctuations in the price of Bitcoin since its early introduction about 9 years ago may mean that this year we could expect more upsurges.
“Right now I think that bitcoin should still go down in price, but it will recover,” says Vays. “$100K this year is possible, but that’s very high. I put the current fair value at $25,000.”
At the moment of writing this post the price for Bitcoin stood at $7 820,45 per BTC, a long way from its pre-Christmas highs jumping around $20 thousand. Be predictions bullish or downbeat, investors directly involved in the cryptocurrency market operations seem to know better, and their being lean on Bitcoin and other digital currencies could in the least be construed as the resilience and viability of the market. Hardly anybody of them thinks of giving up on trading cryptocurrencies.
Exciting articles several times a month