‘Where is Bitcoin’s price headed to?’ is the question everyone seems to ask nowadays.
After coming close to $20,000 in December 2017 and starting 2018 in a relatively good fashion, February was hard for Bitcoin and most of the cryptocurrencies – sinking the largest cryptocurrency to less than $7,000 and the entire crypto market cap from $800 billion to less than $250 billion.
Currently, there are many predictions and scenarios. Below, we are analyzing and discussing the most popular ones – in order to estimate all the directions of Bitcoin’s price in the medium to long-term.
Scenario #1: Investors’ money will increase Bitcoin’s price
The first scenario was discussed by the CEO of an American Express-backed startup named Abra. In an interview with Business Insider, he predicted that big investors will drive the Bitcoin’s price to new gains in the long term.
Jan Brzezek, a CEO & co-founder at Crypto Finance AG (a regulated crypto fund) also had his say on the situation. He said:
“It was clearly a hype and FOMO [fear of missing out] was everywhere. But not from rational institutional investors, but retail investors chasing the quick money. There is no free lunch, so this correction was obvious for me. I even expected it earlier. Those investors burnt their fingers and are now too afraid to go back to this exciting new asset class and the expected institutional money has not flown in yet.”
On top of all this, the potential regulation of Bitcoin that is already happening in countries like Malta and Switzerland is likely going to make the price go up and up in the medium to long-term.
Scenario #2: A decade from now Bitcoin is more likely to be worth $100 than $100,000
Kenneth Rogoff, who is a Harvard economist, recently predicted that Bitcoin’s volatility is what makes the cryptocurrency potentially dangerous. On top of that, he pointed to the potential money laundering and tax evasion issues which according to him, may point the price of Bitcoin to $100 rather than $100,000 in a decade from now.
Rogoff also noted that the regulation is a big factor in his prediction – however – he clarified that only a global regulation could be effective in this case.
Scenario #3: Bitcoin’s price will follow a downward trend after the CME futures launch in December 2017
A lot of analysts believe that the sinking of Bitcoin is due to the CME futures launch that happened in December 2017. A popular cryptocurrency blogger wrote an article in which he predicted the Bitcoin’s price downward trend based on the assumption that gold and silver prices have been suppressed for the last seven years – similar to a lot of other commodities.
While bulls are certain that Bitcoin is rising in the long term, Harvard and Wall Street analysts are skeptical. In the end, the uncertainty is what makes everything more interesting – and unpredictable for Bitcoin, the largest cryptocurrency nowadays.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post