Forbes had originally predicted that Bitcoin price would hit $10,500 by the end of 2018, but now they say it won’t hit $10,000 at all.
2018 has definitely been a rocky road for Bitcoin and other cryptocurrencies. A brutal drop in value that began in early 2018 saw Bitcoin fall from its all-time high of nearly $20,000 in mid-December 2017.
However, summer marked a welcome change. July was a good month for Bitcoin as prices were bouncing back into the bullish game. Bitcoin price flickered around $8,200 by the end of July, which was a strong recovery from the lows of $5,755 in late June.
Even though the Bitcoin market performed well, the price still plunged to $6,500 in the first two weeks of August. Thus, after observing the ongoing downfall in Bitcoin trading activity, Forbes has now seemingly altered their earlier prediction, now expecting that Bitcoin price might settle around $9,500 by the end of the year.
A Rocky Year
The price of Bitcoin has prominently undergone several ups and downs since December 2017. A number of key developments have negatively impacted the cryptocurrency ecosystem, such as:
- Banks not allowing customers to use their credit cards to buy cryptocurrencies.
- A flurry of warnings about investing in cryptocurrencies by governmental financial regulators.
Forbes goes on to state that Bitcoin price recovered in April, but the following two months saw a marked drop. This drop was due to two important events that threw a wet blanket on the cryptocurrency’s recovery, driving the price down. These events were:
- The trustee for Mt. Gox dumping over 8,200 bitcoins on exchanges.
- The hacking of South Korean cryptocurrency exchanges Coinrail and Bithumb to the tune of a combined $70 million.
Upward Momentum
It was the month of July that gave some green signals for bullish movement on Bitcoin price. One reason for a renewed sense of optimism was the possibility of a Bitcoin ETF being approved by the SEC. (However, the SEC eventually rejected a number of applications and put off a final decision on another until the end of September.)
In the final analysis by Forbes, they conclude that the price of Bitcoin will steadily climb throughout the rest of the year. This climb is based upon their analysis that the number of users and transactions will continue to go up. The result is a sustained growth up to $9,500 by the year’s end.
However, a significant event can change everything. SEC Commissioner Hester Peirce yesterday announced that the agency was doing a further review of the application rejections for 9 cryptocurrency ETFs. If the SEC reverses course and approves a Bitcoin ETF, then that opens the door to a flood of institutional money flowing into the marketplace. Such a move would definitely push Bitcoin price higher, perhaps even past the $10,000 barrier.
Do you agree with the prediction of Bitcoin not hitting $10,000 by the end of the year? Share your thoughts in the comment section below.
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