Bitcoin and other cryptocurrencies have seen prices correct sharply in 2018. The oldest digital currency rallied by almost 2000 percent in 2017 but has dropped 70 percent in 2018. However cryptocurrency believers have backed Bitcoin to rise as high as $60,000 by the end of this year.
What lies ahead for Bitcoin prices
Julian Hosp, co-founder of TenX remains bullish on the outlook for cryptocurrency prices. In an interview with CNBC he acknowledged that a big event may be needed for cryptocurrencies to begin the next rally. In December 2017, when Bitcoin prices were trading at $19,000 he predicted that they will fall to $5,000 in 2018. Though prices did not correct to $5,000 but they did drop to below $6,000.
The crypto wallet cofounder had also predicted that Bitcoin prices will rise to $60,000. He said, “I predicted for 2018, we’re going to see $5,000 and $60,000. So $5000, we pretty much hit it, so lets see if we can do $60,000.” Julian Hosp was confident that his prediction will come true. But he acknowledged that it will need a major event to get a momentum.
He said that if Bitcoin prices were to reach $60,000 by December 2018, then it was imperative for it to reach $10,000 by August 2018. Cryptocurrency prices are volatile and have sharp price movements.
Future events that could trigger sharp price rally
Any short or medium term price fluctuation in cryptocurrency prices will depend on regulation imposed by financial authorities and further developments in Bitcoin blockchain. CBOE has filed for a Bitcoin based ETF with the SEC. If approved, the ETF will bring more capital in the cryptocurrency industry as retail investors will join the crypto bandwagon.
Many smaller investors would be willing to invest their savings in cryptocurrencies if a SEC approved cryptocurrency product is launched. If more countries impose regulatory sanctions on cryptocurrencies then it would have negative effect on prices.
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