Friday, 20 April 2018

'Bitcoin to touch $60,000 in 2018 before crashing at $1,000 in 2019'

A bubble or not, Bitcoin has been the talk of trading markets throughout 2017. Those who invested flourished while those who refrained witnessed one of the biggest spikes in the value of Bitcoin. But the biggest question is whether it is too late to buy Bitcoin or not. Here are some answers that might help.

The popular cryptocurrency in the world enjoyed grand attention this year. With a skyrocketing 11,100 percent surge in the value in just 11 months, Bitcoin was hard to be ignored. The steep fluctuations during the course of 11 months have struck fear in many, but also served as an opportunity to those who're looking at long-term investments.

Bitcoin traded at a record high value of over $17,000 before falling to around $14,000 on Friday, according to CoinDesk, which averages prices from major exchanges, CNBC reported.

"It goes without saying that prices have reached a level where sentiment is exhibiting short-term euphoria. But to think prices are at mania levels where this could suffer a serious crash here... is a bit ridiculous," Mark Newton, managing member at Newton Advisors, wrote in an earlier note to clients.

"I truly don't think people are involved on a mass scale yet. We've heard the fraud claims. Now we need people profiting immensely all around us and making forecasts for $1 million, etc., for it to truly have reached a euphoric peak," Newton said, CNBC reported.

If not $1 million, Bitcoin is certainly reaching for the stars with staggering growth in the cards next year. And, that's if Denmark's Saxo Bank's "Outrageous Predictions" hold any truth.

According to the "Outrageous Predictions" report, Bitcoin's growth is likely to continue throughout 2018 before the cryptocurrency takes a nosedive in 2019. The bank estimates Bitcoin's trading value to touch a record-high $60,000 in 2018, which answers most of your questions about whether it is too late to invest.

But the same report warns investors about an alarming crash in Bitcoin value in 2019.

"The Bitcoin phenomenon finds the rug torn out from under it as Russia and China move deftly to sideline and even prohibit non-sanctioned cryptocurrencies domestically. Russia officially enters the cryptocurrency mining space to influence protocol developments and shift the focus away from Bitcoin in an effort to keep more Russian capital onshore. China makes a similar move," Kay Van-Petersen, macro and cryptocurrency strategist at Saxo Bank and Jacob Pouncey, a cryptocurrency analyst, said, according to Sputnik News.

"After its spectacular peak in 2018, Bitcoin crashes and limps into 2019 close to its fundamental 'production cost' of $1,000," the report added.

If the Saxo Bank report is true, it is the very definition of Bitcoin being a bubble. As Credit Suisse Group AG Chief Executive Officer Tidjane Thiam said, "From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble." Thiam's statement was made earlier last month when the currency had just exceeded $7,000 and it is not at almost twice that value.

JPMorgan Chase & Co Chief Executive Officer Jamie Dimon also warned about Bitcoin and even asserted it to be "a fraud." But Bitcoin's rising value has challenged all those accusations, attracting many investors and advocates in a very short period of time.

Digital currency investor and former Fortress hedge fund manager Michael Novogratz, who called Bitcoin "the biggest bubble of our lifetimes," predicted that its value could reach $40,000 by the end of next year.

So if Bitcoin is going to hit the record high-value next year before taking a plunge in 2019, investors are advised to practice caution every step of the way.

source:ibtimes.co.in

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