The main challenge for those trying to make Bitcoin price predictions in is to understand more than just technical patterns, and to take into account other factors such as an unprecedented up-tick in global awareness, and the integration of new mechanisms that will allow trillions of dollars in institutional money to flow into crypto markets. As well as the recent ups of the past few years, there have also been some brutal downs. For anybody holding any cryptocurrency during a large part of , they will know that making predictions on the future value of Bitcoin is complicated, and even with all of the information available to us at our fingertips, it is fraught with danger.
Now though, we do stand at a point in time which will likely be remembered for the comparatively large number of people on the planet that know about Bitcoin, versus the significantly smaller number of people that are actually invested in cryptocurrencies today. Developments that have happened, or are happening soon, will drive multiples-higher amounts of trade volume and investment into cryptocurrency markets.
It will be the year that crypto unrecognizably changes, forever. Bitcoin, like any other cryptocurrency, any product, service, or any other medium of exchange, requires a logic-based reason for people to be happy to exchange something of value that they own in return for it.
When it was created, Bitcoin was envisioned to become exactly the financial tool that it is today:. Initially, Bitcoin provided something totally unique. Users could, for the first time, quickly and easily send value to peers, no matter where on Earth they are, without the need to use a trusted intermediary such as a bank.
Bitcoin has rapidly and consistently grown in value in the past decade, because of the resilience of the system to both malicious actors and to authorities that may have an interest in shutting the network down.
As Bitcoin has grown, there have been additional factors that have driven its value to where it is today, primarily that it is the most widely-known cryptocurrency, the first cryptocurrency, and arguably, the most trusted cryptocurrency. At this point, hundreds of thousands of novice retail traders had flooded the market with long positions after seeing an endless bombardment of news coverage and stories from friends as to the incredible daily profits they were making.
Prior to the events of , largely ignited by the Ethereum-spawned ICO boom that began in , cryptocurrency markets were fairly forgettable for most of the previous 4 years. A telling sign of the huge growth in the volume of trading taking place in the cryptocurrency macrocosm, is the growth being seen in many of the individual microcosms in which traders meet.
A multi-asset, margin trading platform that operates in the intersection between cryptocurrencies and traditional assets, PrimeXBT , has been one platform that has led the pack in , and mirrored the huge growth in overall trade volume. For point of reference, where it has taken other major exchanges years to grow their liquidity into the hundreds of millions, PrimeXBT has ridden the wave of expanded trade volume to reach a daily trading volume in the hundreds of millions, with just over 6 months.
However, PrimeXBT, in a similar way to many of the new breed of cryptocurrency trading platforms, is also acquiring a huge amount of market share from older platforms. This is largely because of their ability to provide the waves of new traders with features that make generating revenue in crypto markets easier, for example, the ability to invest into user-created, peer-to-peer funds, and mirror the trades of the most profitable traders, as is possible on PrimeXBT.
This expansion was as an immediate reaction to the hype and media coverage surrounding digital currencies, and the barrier to entry for retail traders was, of course, very low. Once a retail trader decides to invest into Bitcoin and other cryptocurrencies, they simply need to set up an account at a trading platform, make a deposit, and initiate a trade. But while retail traders were able to dive into the markets head first, and catch some of the profits seen during , large scale institutional investors typically operate within heavily regulated environments, and because of their legal responsibilities and obligations to their investors, have not been able to move into cryptocurrency markets as fluidly.
From onwards, some of the biggest excitement within the cryptocurrency industry has surrounded two mechanisms that will allow institutional investors to pour billions of dollars into crypto-assets.
Bakkt and the various Bitcoin ETFs being considered right now are two of the most decisive indicators that will see enormous growth in the value of Bitcoin. Bakkt is the trading platform for Bitcoin futures and other crypto-asset variants, that had intended on launching in , with that being delayed until September Bakkt looks very promising.
It is owned and operated by the Intercontinental Exchange ICE , which is the parent company of a number of major international financial marketplaces including the ICE futures exchanges, the Liffe exchange, and perhaps most famously, the New York Stock Exchange. The launch of Bakkt is set for September , and barring all delays, will allow institutional investors a new investment vehicle to access cryptocurrency markets, which is provided by one of the central organizations of global trading, and who are both regulated and widely trusted.
The U. ETFs are instruments that allow investors to trade on the value of an asset without having to specifically own it. Currently, investors typically need to interact with unregulated cryptocurrency exchanges in order to trade Bitcoin. For retail investors, this is not an issue. Small individual investors have been the backbone of the cryptocurrency industry since its beginnings.
For large institutional organizations, however, they have legal and fiduciary responsibilities to their investors, which often prevents the kinds of risk from being taken that are common in the cryptocurrency industry today.
Unlike traditional trading platforms, cryptocurrency platforms have had a history of sporadic collapses and exit-scams, which institutional investors cannot risk being a part of. The launch of any of the 3 Bitcoin ETFs currently being considered would allow for trillions of dollars of institutional money to safely flow into cryptocurrency markets.
Traditionally the cryptocurrency market experiences a bull run lasting approximately 18 months following each halvening, with the halvening in being closely followed by two major bull runs in , and the halvening in being followed by the now-renowned bull run.
This 4-yearly event will coincide perfectly with a gargantuan wave of investment from traditional markets, and pundits universally expect and to follow the same patterns seen previously. Opinions vary widely on an exact Bitcoin price prediction for , although there seems to be a general consensus that there is likely to be new all-time highs during the year.
Crypto-evangelist and well known digital security pioneer, John McAfee, stated that:. As at any point in the history of Bitcoin, to a degree, predicting its price can be taken with a grain of salt. Many experts previously have been far off the mark, and many have been somewhat accurate in their predictions, who may easily have not have been.
Saying this, there does seem to be a consensus that expectations for are high. This makes sense considering the range of different upcoming events that all point to another bull run to be on the horizon. And, as we watch to see how the launch of Bakkt affects the markets, if any of the Bitcoin ETFs are approved, and the effect they will have, what is for sure is that the cryptocurrency industry is preparing for an inevitable tidal wave of investment from traditional institutional players globally.
The trillion-dollar question is whether will be the year that the flood gates open? Sign in. Get started. Bitcoin Price Prediction for [Updated]. Andy P Follow.
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The general consensus is positive that Bitcoin will go up, but no one can accurately make a prediction. Disclaimer: The opinion 22020 here is not investment advice — it is provided for informational purposes. It does not necessarily reflect the opinion of U. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
The Bitcoin ETFs
How much are Bitcoin Litecoin Ethereum coins predicted to be worth by , , ? However, the fallacy of this argument is even if you believe the e-currency will replace all normal currency, there is absolutely no reason to believe it will be bitcoins that rule the day. There are huge technical flaws with bitcoins. Same with Ethereum. Sure maybe the blockchain is reasonably secure. But every time there is a fork in the code, there is a potential new ecurrency.
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Bakkt looks very promising. Other coins such as Ethereum can verify transactions in around 16 seconds. Thanks once again! Unsubscribe at any time. I must say, as a lot as I enjoyed reading what you had to say, I couldnt help but lose interest after a. Kenny Li. The block reward will reduce from 25 LTC to Roger Ver is an early investor in Bitcoin and related blockchain startups. The price is likely to continue decreasing and reach the support line by the end of the year. This does not fit into our projections. It is gold equivalent…there are about 20 million Bitcoin available today. Therefore, the possibility that the price movement after Dec 15, is the same as that after Jan 14, but occurs at a faster rate is invalidated. Journalist Matthew Boesler refuted the prevailing opinion in the society and said that the rapid growth of bitcoin is due to normal economic processes. More specifically, it was 2.