Arthur Hayes, the CEO of BitMEX said that bitcoin would more than double and reach $ 10,000 per coin this year.
Actually, this is not his first prediction: indeed, during the bull market of December 2017, he recalled that bitcoin is still extremely volatile, and had issued a forecast of 50 000 USD in case of ETF in 2018. This famous prediction appeared in June 2018 in an interview with the CNBC news media, when he said a positive regulatory response to Bitcoin could send it to $ 50,000 by the end of the year. Unfortunately, the positive answer did not arrive and his prediction did not happen either.
“But things are changing. The Fed did not support a correction of 20% in the SPX. In the minutes of the last Fed meeting, the scatter chart now shows rate hikes for the remainder of 2019. The Fed will begin prioritizing runoff in the third quarter. We are only a leap, a jump and a jump from the Fed’s expanding balance sheet, »
The truth is probably that everything will depend on three main factors in 2019:
- What will legislators and other regulators do: Once the institutional buyers actually intervene, it is at that moment that the true surge of the cryptocurrency market will really occur?
- Better understanding of Bitcoin’s limited offer: Meaning that when the market realizes that the available supply of Bitcoin is still lower than the mined coins in circulation and that the supply is still less than the total supply that can be produced, the course will certainly benefit.
- The state of the world economy: Once all the technical challenges have been resolved and the network is fully operational, the Bitcoin price will benefit greatly, and its intrinsic value will certainly increase.
However, it will take time for investors to regain confidence in the crypto-market. While some have lost their savings because of hackers and scams, others refuse to invest because of the bad publicity of Blockchain technologies and cryptocurrencies.
Let’s wait and see!!
Photo credit: Bitmex