Bitcoin will reach $ 40,000 by the end of this year while 90% of other cryptocurrency projects will fail (Forecast by Llew Claasen, the Executive Director of the Bitcoin Foundation). The bitcoin price will be around $ 200 (James Rickards, strategic director of Meraglim financial company)
Forecasts by financial analysts for the last couple of weeks amaze with their rush to extremes!
According to Llew Claasen of the Bitcoin Foundation the bitcoin rate will be subject to high volatility for about 3-6 months, and in the fourth quarter of 2018 the cost of bitcoin will start to increase. This seems to sound fair, so the price of $ 40,000 can be fully justified.
Claasen believes that 90% of other cryptocurrency projects will fail, because they have no prospects for development. Claasen is confident that many coins were created for one purpose – to enrich their developers. Vitalik Buterin said almost the same about ICO projects last year.
Other experts share the view of Claasen. Despite a strong drawdown at the beginning of the year, in July bitcoin can set new records. This opinion was recently expressed by Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors LLC.
Famous analyst and consultant Tone Vays gave a “moderate” forecast for 2018, saying that the price of bitcoin would reach $ 25,000 by this year’s end. In Vays’ opinion, Bitcoin will recover sooner rather than later. He is not too sure how high the value will go when the markets start to stabilize again. Reaching six-digit figures will prove to be virtually impossible at this stage.
Ronnie Moas, another famous Bitcoin enthusiasts, thinks along the same lines. His prediction puts the Bitcoin price at $28,000 at some point throughout 2018.
These words sound much more optimistic than the forecast of Bloomberg Intelligence analyst Mike McGlone. Let me remind you that last week he said bitcoin could plunge a further 90 percent in an environment of unsustainably growing supply. Using Amazon.com Inc. and the Nasdaq Composite Index’s spectacular rise and retreat at the turn of the millennium as a proxy, he said the currency could plunge to $900.
While the creators of Bitcoin intended to limit supply to 21 million coins, forks mean that there are already more than 50 million outstanding coins based on the original blockchain. There’s also nothing preventing rivals from spawning an infinite amount of clones, he said. The number of tradable cryptocurrencies jumped 120 percent in the past year.
“Parabolically increasing supply is the primary limitation to cryptocurrency market-price appreciation,” McGlone said. “There’s strong gravitational pull toward $900, the average price since inception and the start of 2017.”
James Rickards, the strategic director of Meraglim financial company believes that the current price of bitcoin is too high, so he remains a staunch supporter of the bearish trend.
According to Rickards, the current valuation of Bitcoin is still far too high. Given the speculative nature of this crypto currency, it is evident the markets can swing in either direction. Rickards added : “I don’t know how anybody could set and justify a price target that high for this year. I think bitcoin is going to go to $200. The only residual use is for criminals, and it will keep grinding down.”
What will happen to the Altcoins according to his logic I wonder? More modern and progressive crypto-currencies compared to bitcoin will fall tens of times as well? Blockchain technology penetrates into all spheres of human life, that is why I do not believe in degradation of the crypto currencies. After all, even banks, insurance companies and other financial institutions can extract much use from the blockchain, reducing operational costs which means increasing their profits!
The recent crypto market events have shown it will not be the analysts or masses of traders who will manage the crypto currencies rates, but the individual “whales” who have already concentrated most of the produced bitcoins on their wallets. For this and in their interests, stove-piping will be used, either in the form of rumors or in the form of news (remember the international tradional wisdom “Buy the rumor, sell the news!”). After all, one can earn the biggest profit at the exchange rate fluctuations only. This has been known for many years to the stock market and Forex market traders.