The cost of Bitcoin has been rising for the fifth month in a row, only in June, it went up by 47%, and in the second quarter of 2019 — by 255%. The current situation is similar to October 2017, when in three months the rate of the first cryptocurrency rose by 364%, from $4.327 to $20.093.
Nevertheless, against the news of the launch of Libra from Facebook, CFTC approval for the launch of LedgerX deliverable Bitcoin futures and the closing of its short positions by most institutions, the market capitalization again exceeded $334.5 billion with the BTC domination index 62.5%.
Experts and analysts believe that the selloff was triggered by a hack attack on a Singapore-based cryptocurrency exchange referred to as Bitrue. Bitcoin corrected towards $11.000 but formed a low at $11.293. A shallow correction is underway with Bitcoin reentering the $12.000 level.
Also, there are favorable conditions for the growth of altcoins. Investors are still afraid of a strong correction of the BTC rate — and this is certainly a possibility. Strong support is now the level of ~ $10.000. However, after confidently consolidating above $12.000, altcoins will be able to grow by 30–50% per week — they will need to make up and be ahead of the gap with the rate of the first cryptocurrency.
The Market Survey
As of July 28, the cryptocurrency market, after having updated the maximum and reached $386 billion, showed a rather sharp decline. As a result of the correction, the capitalization indicator lost more than 16% of the maximum or about 11% compared to the values of the environment and is currently in the region of $334 billion. The activity of the participants is high, the volumes are noticeably higher than the average.
It is believed that the growth of Bitcoin first caused technical factors, and then market participants began to pay attention to the positive news. Among these, experts singled out the announcement of the Libra project from Facebook and obtaining a license for an authorized derivatives market (DCM) by LedgerX LLC. Also, a sharp rise in the price of Bitcoin coincided with the weakening of the yuan due to the escalating trade conflict between the United States and China. Experts believe the correlation at this time was high.
Has Time Come To Join The Investors’ Row?
According to the positive forecasts of many crypto analytics, now the first cryptocurrency is moving in the direction of $13.500- $14.000. Correction can begin at any time, but given the growth rate gained, buyers will buy out all the falls and quickly recover losses.
“Bitcoin will cost $1 million!” — Jesse Powell, the head of the Kraken exchange, believes that the value of the coin will increase tens and hundreds of times.
The head of the major cryptocurrency exchange Kraken Jessie is confident in the further growth of Bitcoin. In the evening of June 26, the value of the main digital coin reached an annual maximum of $13.739, after which it began to decline sharply and is now at $11.600. Despite a slight drop since the beginning of the year, the increase is 241%.
In the coming months, eToro analyst Simon Peters believes in the growth of the first cryptocurrency to the level of $100.000. In his opinion, Bitcoin will reach $20.000 in the next few weeks, after which it will be in the zone from $50.000 to $100.000 by the end of 2019.
The expert stressed that the current asset growth is associated primarily with institutional, rather than retail investors. According to Peters, even a Bitcoin correction will not prevent him from closing the first half of the year “on a positive note.”
“I’d say this year is a cryptocurrency Wall Street time and … we think cryptocurrency on the Bitcoin will be worth $30.000 at the year-end — it is limited.” — David Drake.
Drake is the founder of LDJ Capital, and his enthusiasm for the cryptocurrency isn’t limited to Bitcoin. Drake believes that Bitcoin will always retain its preeminence in the crypto sphere, but cryptocurrency, in general, is headed toward much more widespread acceptance.
Eventually, he said, hundreds of different cryptocurrencies may play an important part in the day-to-day life of the financial market.
However, there is always a place for pessimistic forecast, and one of the most pragmatic experts is Bill Gates, that says:
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment… I agree I would short it if there was an easy way to do it.”
Gates has never been a fan of Bitcoin, famously pooh-poohing the coin he received as a birthday present years ago. While Gates declined to attach a dollar value or timeline to his prediction, the implication is that — sooner or later — the Bitcoin market will implode.
Ironically enough, the Bitcoin paper market is rapidly evolving, and there may yet be a simple way to short Bitcoin before Gates’ predicted market crash.
Well, there are a lot of opinions and assumptions but most of them lead us to the inevitable positive forecast of Bitcoin growth. Almost all experts are confident that the coin will rise in price in the near future, but they warned that any growth should be accompanied by a correction.
To join the investors’ row now or to wait for the appropriate moment, it’s up to you! ChangeHero is always here to support any of your decision!