A good number of crypto investors had a sigh of relief right after South Korea pulled out its plans to ban crypto exchanges in the country. And for this reason, Bitcoin and other altcoins are on a bullish trend yet again. Bitcoin has climbed back to $10,000. Is this a good sign for all crypto investors?
And now, predictions are back that the digital currency is about to double its price this 2018 after seeing a surge in the price of both Ethereum and Litecoin.
Thomas Lee, the managing partner at the financial research firm Global Advisors mentioned that he expects to see a new record high for Bitcoin as early as July according to his analysis. He based his prediction on the 22 corrections made on the digital currency since 2010.
Bitcoin was able to jump in value by more than 1,300% in 2017. But after mid-December, the digital currency plunged by as much as 70%. According to Lee, “Bitcoin recoveries take 1.7 times the duration of the decline and this implies that 85 days are needed to recover prior highs”. And according to his prediction, expect Bitcoin to regain its value by July 2018. Could he actually be correct?
Bitcoin isn’t the only digital currency that is looking bullish. Ethereum is seen to hit $1,650 by April 2018 if the trend continues. Experts believe that once Ethereum hits $1,650, it could encourage a greater number of investors to have confidence in investing in this cryptocurrency. This means that it is only the beginning for Ethereum.
Why exactly is Ethereum looking bullish? What makes Ethereum a strong contender against Bitcoin is the ability of users to create apps that are using the network. In addition to this, Ethereum is known to process transactions faster than Bitcoin.
Miles Eakers, who is the chief market analyst at FX brokerage Centtrip mentioned that it is possible that Bitcoin hitting above $10,000 could actually open the $12,000 level.
There have been challenges for Bitcoin lately. There was added scrutiny from regulators worldwide taking a closer look at how each country can protect investors and even tax them on some occasions. In addition to this, the hacks have also caused panic on the part of many investors worldwide. Recently, $532.9 million worth of digital currency was stolen from a Tokyo-based cryptocurrency exchange, Coincheck.
Just recently, European Central Bank executive board member Yves Mersch mentioned that Bitcoin is not a currency but rather a speculative asset during his speech in Paris. He also mentioned that digital currencies “may become worthless at any time” because of the absence of a trusted issuer such as a central bank.
Volatility is part of Bitcoin and other cryptocurrency’s nature. Because of this, you can expect drastic movement in its price. Also, investors should understand that regulators and many other factors can play a role in its price. And lastly, despite the predictions of so-called experts, this is still pure speculation.
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