Analysts Issue New Forecasts as Bitcoin Dips Below $5,000

Crypto Coin Growth

Crypto is about the Timing… And Times are Good

CCG News

Analysts Issue New Forecasts as Bitcoin Dips Below $5,000

Analysts Issue New Forecasts as Bitcoin Dips Below $5,000In the days before Americans gathered to celebrate Thanksgiving, cryptocurrency markets suffered their worst setbacks since investors started treating Bitcoin as a digital asset for financial speculation. Even as families gathered around the Thanksgiving dinner table, BTC/USD touched $4,500 and even dipped below this level despite having approached $4,600 earlier in the day, but this did not stop analysts from issuing sunny forecasts for the digital currency.

Market Trends of Bitcoin

Sonny Singh, an executive at financial technology firm BitPay, appeared on Bloomberg to be interviewed about what seems to be a market crash situation not only for Bitcoin but also for other major cryptocurrencies. Singh explained that BTC insiders and seasoned investors are seeing a market bottom instead of a market crash, and he ventured to issue a forecast of $15,000 to $20,000 in 2019; the rationale behind this price target was that financial services giant Fidelity is still on track to offer digital currency trading next year, and there is also the pending launch of Bakkt, a Bitcoin futures trading platform operated by the parent company of the New York Stock Exchange.

Tom Lee, a Wall Street personality who has been quite bullish on Bitcoin and the overall cryptocurrency market, is sticking to his prediction of a Santa Claus rally that will propel Bitcoin to $10,000 territory over the next few weeks; should this forecast become a reality, BTC/USD would reach 50 percent of its valuation 12 months ago. This projection is being challenged from many angles, particularly by technical analysis traders who believe that Bitcoin could actually touch $1,200 before New Year’s Eve.

Investors Keep Their Eye on Cryptocurrency Exchanges

Even more hopeful predictions are being issued by individuals such as Adam Back, one of the founders of Blockstream, a financial tech startup that develops blockchain applications. On his Twitter feed, Back posted an update calling for $250K BTC/USD in a few years; this projection is partly based on the market capitalization of Bitcoin compared to gold, which has a market cap of about $8 trillion. Now that BTC has been battered, its market cap is only about $80 billion; however, reaching a tenth of gold’s market cap is something that Bitcoin has accomplished in less than 10 years.

Heading into the end of 2018, what is certain about Bitcoin is that circulation has remained elusive, and this has probably contributed to the current downtrend. A more likely positive scenario for BTC/USD would have to be boosted by reliable news about adoption as a major platform for mainstream payments.

About Author