Bitcoin Could Trade Between $3,000 and $5,000 Until March

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Bitcoin Could Trade Between $3,000 and $5,000 Until March

Bitcoin Could Trade Between $3,000 and $5,000 Until MarchAfter a seemingly promising push towards $4,000 and beyond, Bitcoin approached the middle of January with a disappointing lurch towards $3,700, a situation that some analysts believe is indicative of markets being oversold. On January 11, BTC/USD fell all the way down to $3,706 from a high of $4,050 two days before, crushing the sentiment of investors who believed that the $5,000 was clearly attainable before the end of the month.

Jeremy Allaire’s AMA Influences Cryptocurrency Markets

Part of Bitcoin’s decline in the second week of January has been attributed to comments made by Jeremy Allaire, CEO of a cryptocurrency company backed by Goldman Sachs, during an “Ask Me Anything” session on Reddit. Allaire’s company, Circle Trading, is largely considered to be the closest link that cryptocurrency markets have to Wall Street, but he believes that the current state of BTC affairs are a distraction to the core values of the digital currency world.

An interesting observation made by Allaire during his question-and-answer session was focused on correlation: he believes that the herd instinct of currencies that follow the beat of Bitcoin’s drum is irrational. Allaire believes that the gold rush mentality of cryptocurrency investors is tapering off, which should result on a better understanding of digital assets, their true value, and how they should really be adopted; despite these comments, Allaire still thinks that many tokens are undervalued.

Predictions of Digital Currency Markets in Early 2019

As for exchange rate projections, at least one respected analyst believes that BTC/USD is about to enter a sideways trading period that could range between $3,000 and $5,000 before a rally can be envisioned. Vinny Lingham is the CEO of Civic, a tech startup that develops blockchain solutions to prevent identity theft, thinks Bitcoin investors are locked into a day trading strategy that mostly involves making quick profits, thus keeping a certain level of volatility in the markets.

Not all digital currencies are marching in step with BTC. Ethereum investors are anxiously awaiting a major fork of the original Ether token, and this has resulted in ETH/USD bouncing back from the low values reached in late 2018. Ripple Labs’ main token, which trades as XRP, is slowly pushing towards $0.35 and is expected to reach $0.50 by February; however, whether it can surpass Ether in terms of market capitalization remains to be seen. In the end, Allaire’s comments about correlation dissipating in the digital currency markets seem to be taking place in early 2019.

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