Wednesday 27 June 2018

Can Bitcoin Cross $15000 By The End Of The Year?

https://bitcoincraze.xyz/can-bitcoin-cross-15000-by-the-end-of-the-year/-


Bitcoin prices have rallied over recent weeks – jumping nearly 50% from below $6,700 in early April to almost $9,900 in recent days. Although the cryptocurrency seems to facing some resistance around the $10,000 level, we believe that the ongoing rally should continue over the rest of the year. Based on our interactive Bitcoin Price Estimator, we forecast that Bitcoin could be worth over $15,000 by the end of 2018.


Understanding What Drove The Price Fluctuations Over Recent Months


The global cryptocurrency industry has seen a flurry of new developments since December. Many of these developments had a negative impact on the growth prospects of cryptocurrencies, like restrictions by banks on the use of credit cards to buy cryptocurrencies, and calls by financial regulators across the world for caution while investing in digital currencies (with some countries even banning their use). This sent cryptocurrencies sliding in value from the all-time highs seen in mid-December 2017, as demonstrated by the slump in Bitcoin’s price from almost $20,000 then to below $6,000 in early February.


Notably, a recent report by the Federal Reserve indicated that another important factor behind this sharp decline was the launch of Bitcoin futures by the CME. The Bitcoin futures allowed investors with a negative outlook on Bitcoin to enter the market – something they hadn’t been able to do when the cryptocurrency witnessed an unusually strong rally. The fact that Bitcoin prices began falling after having peaked on the same day that futures trading began lends support to this argument.


However, Bitcoin prices have recovered over the last couple of months thanks to some positive developments. Most notable among them was Goldman Sachs’ reported efforts towards setting up a cryptocurrency trading desk. This marked a departure from the overwhelmingly negative stance taken by investment banks against cryptocurrencies, and the investment bank’s impending entry into the market was seen as a first step towards the integration of cryptocurrencies into the traditional financial industry.


Additionally, the fact that many cryptocurrency exchanges are now required to be registered with financial regulators (like the SEC in the U.S.) is also likely to make the nascent industry more stable and sustainable in the long run – something that boosted investor confidence in cryptocurrencies over recent weeks.


What We Expect Going Forward


Source: https://www.forbes.com/sites/greatspeculations/2018/05/08/can-bitcoin-cross-15000-by-the-end-of-the-year/


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