Anyone closely following the price of Bitcoin will know price predictions for Bitcoin are plentiful. However, some of them come with more weight than others. This Friday saw Todd Gordon, founder of the TradingAnalysis website, go on CNBC’s segment Stock Draft and predict a Bitcoin price of $10,000 by the end of the year.
Todd Gordon is previously known to have accurately anticipated the price of oil. In November of 2015, he predicted that the price of crude oil – which was then trading at $41 – would plummet to $26. A mere three months later, the price of crude oil had declined to $26.05 per barrel.
More specifically, Gordon’s cryptocurrency prediction is that Bitcoin will first drop below $5,000 only to rebound and reach $10,000 by the end of this year. Gordon argues that the main reason for this shifting price trend is the ”significant market volatility” in cryptocurrencies and Bitcoin.
Nonetheless, Gordon argues that Bitcoin is still in the midst of a ”beautiful uptrend”. Although the price of Bitcoin has experienced a major decline from its market high of just shy of $20,000 this past December, Gordon called this ”inconsequential” in the grand scheme of things, and especially considering the Bitcoin price gains since 2015.
Gordon also pointed out that virtual currencies are a “very technically driven” sector, where market sentiment and technicals can allow for significant recuperation of market losses. Gordon also pointed out that the current high to low range for Bitcoin is at 17% on average. This is also one of the lowest ever experienced by Bitcoin.
Nevertheless, this is far from the only market prediction for Bitcoin. The stock analytics firm Trefis recently estimated a year-end Bitcoin price of $12,500, which roughly lines up with Gordon’s estimate. Moreover, this estimates is slightly adjusted from Trefis’ previous prediction of an end of year price of $15,000.
Trefis’ forecast is supposedly based on a model of supply and demand, where supply is determined by the number of available Bitcoin and demand is represented by the number of transactions and users.
The Wall Street analyst Spencer Bogart also issued a prediction this May, stating that Bitcoin would trade at a level ”at least” above that of $10,000 come the end of 2018. Bogart pointed out that a major driver in this would be the looming institutionalization of Bitcoin and the cryptocurrency sector as a whole.
This sentiment has also been echoed by the head of IOHK, Charles Hoskinson, who has predicted a ”multi-trillion dollar influx” of capital into the cryptocurrency industry, stemming from the entry of institutional investors. It remains to be seen whether Todd Gordon’s price prediction for Bitcoin also lines up with the real price, which was the case with crude oil, but we will know for sure by the end of this year.
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