Will Bitcoin Continue to Rise in 2018?
Bitcoin is a type of cryptocurrency or a digital asset that can be used to track things other than mere cash to the contracts. Like any other currency types, Bitcoin has a monetary value. Eight years ago, Bitcoin was just worth less than 1 cent.
However, because of the increasing demand for this digital currency, Bitcoin is already drawing millions of dollars after reaching the record high of $16,000 (per Bitcoin). Overall, great expectations, as well as the presence of new retail players, CFD trading and institutional investors have contributed to the rapid increase in the prices of Bitcoin and the crytocurrencies.
As the year 2018 unfolds, a lot of opinions about the probable status of Bitcoin in the stock market are being given by financial experts. Below is an overview of these major 2018 predictions.
Bitcoin price may continue to rise
Despite the growing number of other digital forms of money, Bitcoin remains to be the best-known and most valuable cryptocurrency. In 2017, the prices of Bitcoin have tremendously soared and this has made even non-traders to look into the Bitcoin market and decide on how to engage in it.
- According to financial analysts, Bitcoin will still continue to rise up to $60,000 with more than $1 trillion market capitalization.
- While traders can still expect the rise in Bitcoin prices, they have to lower their expectations down in order to diversify their stocks and properties. The main reason for this backup plan is that the rise in Bitcoin prices is predicted to occur at a relatively slower pace in 2018 (ranging only from $10,000 to $50,000).
There could be a Bitcoin catastrophe
Like all cryptocurrencies, Bitcoin is subject to great risk and volatility. Analysts believe that there is a huge probability that China and Russia may engineer a Bitcoin catastrophe, resulting in a collapse in the cryptocurrency. Analysts are predicting that Bitcoin may downgrade to just $1,000 by 2019.
- In China, initial coin offerings and Bitcoin exchanges are already being banned. As a result, Bitcoin has cracked down and China had lost more than 90% of its overall Bitcoin trade. The global cryptocurrency market somehow declined for a short period of time, but has already recovered after a few months.
- The situation is quite similar with Russia. Prior to its declaration that cryptocurrencies should be regulated, Bitcoin and other forms of digital money are not managed at all.
- According to the Russian government, the creation of Bitcoin and other digital currencies should be deemed as illegal because of their likeness with scam financial pyramids (which are considered to be illegal in Russia). On the good side, buying digital currencies is legal and is not punishable by law.
Despite these negative predictions, diehard supporters of Bitcoin will not give up without a fight and ensure that it will be finally recognized by the broader financial community. However, the more important question to answer now is not whether or not this Bitcoin catastrophe will happen, but when and how large the damage is.