Bitcoin prediction: It’s been the roughest week yet for cryptocurrencies as the price of Bitcoin sank to just over $6000 – its lowest since November. This, coupled with regulatory fears and ICO scams, has led to increasingly bearish sentiments towards the cryptocurrency market in general. It has lost $340 billion USD since the start of the year. So it’s great news for investors today, as the price of Bitcoin unexpectedly soared 11.4% – over $800 USD – from last night’s low, at 3:30 pm EST this afternoon (the time of writing). But the even bigger news is that analysts are predicting Bitcoin to hit $50K this year.
In an interview with CNBC, Thomas Glucksmann, head of APAC business development at Gatecoin, said that “There is no reason why we couldn’t see bitcoin pushing $50,000 by December.” This, he says, is due to a market rebound as well as “major technology developments” such as bitcoin’s upcoming Lightning Network, which aims to speed up transactions.
In the same report, Jamie Burke, CEO of Outlier Ventures, stated that he believes the market will likely go on a bull run. It will be “comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in.” he said. This ‘crypto winter‘ refers to a period where the market will settle down and focus on market fundamentals, potentially becoming more stable.
And to top it all off, Ran Neuner, host of CNBC’s Cryptotrader show, pinned this tweet to his account in a moment of bravery:
For the record, I am pinning this tweet. Bitcoin will finish 2018 at $50 000.
— Ran Neuner (@cryptomanran) February 2, 2018
With such optimism abound in the industry, it may really be true that we’ll see Bitcoin grow tens of thousands of dollars in coming months. But it’s important to bear in mind that such predictions have been made before…
In 2014, a Coindesk poll showed that most readers thought that one Bitcoin would reach $10,000 by the end of that year, while venture capital firm LightSpeed India gave it a more modest $4000 – $5000. It ended the year at about $315. This goes both ways, of course. In 2015, a Financial Times article gave a bleak outlook for the cryptocurrency, playing on the fact that it had been floating at around $350 for months and that the chances of it becoming a mainstream currency ‘are now zero’. The mainstream currency statement is still debatable, but the article certainly hasn’t aged well since bitcoin hit nearly $20,000 per coin about three years later.
Anyway, none of this is to say that bitcoin won’t do well this year, but it is a casual reminder to be wary of predictions which seem authoritative. Either way, it looks as though it’s safe to be bullish at the moment and hope that today’s great performance continues in coming weeks.
Featured image: BTCmanager.com