Bitcoin

Will Bitcoin Bottom to $5,000 Before Springing All the Way to $50,000 This Fall?

Will Bitcoin Bottom to $5,000 Before Springing All the Way to $50,000 This Fall

A few weeks ago, hedge fund billionaire Marc Lasry, said that Bitcoin might reach $40,000. Sooner rather than later. TenX founder Julian Hosp predicted Bitcoin to touch $60,000 by the end of 2018. Recently, Karim Heiden, predicted a one-trillion-dollar market with a Bitcoin price of $58,000, if an ETF is approved. Even though many billionaires and experts have made these predictions the question remains, has Bitcoin bottomed or will it go lower before the next bull run begins?

I the end of July, Arthur Hayes who is the co-founder and CEO of the cryptocurrency exchange BitMex, said that Bitcoin could bottom around $5,000 before starting its rally to potentially $50,000. He explained that the price could rally to between $8,000 – $10,000 before falling again and that scenario has played out well, by looking at the Bitcoins price action the recent month. The market could heat up in Q3 and Q4 according to Hayes.

Hayes is a former equity derivatives trader and market-maker for Deutsche Bank and Citibank’s Exchange Traded Funds (ETF). He co-founded Hong Kong-based BitMEX in 2014. The exchange is now valued at $3.6 billion on a daily trading volume of roughly $2 billion. It has become “the most liquid crypto-coin trading platform” in the world by offering up to 100x leverage trading and Bitcoin derivatives trading – without any participation from US residents, who can’t trade on BitMEX.

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Hayes ones said; “We missed out on the peak of finance. Instead, we got the decline. There’s not as much money. It’s boring. Bitcoin reminds us of what it must have been like trading an asset class in the late ‘80s and ‘90s”.

Even though we see great deal of volatility we are at the beginning of a new technology where we will undoubtedly look back on Bitcoin as we saw internet in the 1990s; a story Toshi Times covered a few weeks ago.

Speaking of volatility, Bitcoin’s “bubble” has popped about six times where the price dropped from $1,200 to $200 between 2013 – 2015 while it from 2015 – 2017 increased from $200 – $20,000. That the price is declining to today’s prices around $6,400 is not the end of Bitcoin, but an indication that it can rebound and go much higher than it did in 2017, according to Worldcoinindex.

Even though the potential is massive, it comes with an unpredictable nature and high risk. The prediction made by Hayes is based upon an SEC-approved ETF. The SEC has yet to approve an ETF and could potentially continue to delay the process. The most recently rejected proposal was from VanEck/SolidX. SEC says that they will decide on September 30. Many think that it is not a question about if it will be approved, but when an ETF gets approved. It could be during 2018 but might as well be delayed until next year.

Image Source: “Flickr”

Ledger Nano S - The secure hardware wallet