Bitcoin (BTC) Fails To Attain Top Expert Price Predictions As 2018 Comes To A Close
Bitcoin Fails To Attain Price Predictions As 2018 Comes To A Close
There’s no doubt that the year is winding down and everyone is looking ahead to a new year which is just few weeks away. Preparations aimed at ushering in the Christmas and New Year seasons are in full gear.
Corporate companies, government establishments and a lot of digital companies are also winding down business activities, taking a tally and checking how they have fared so far.
In the midst of all of this, cryptocurrency investor, traders and enthusiasts are also looking into their books to see where they have erred, how they have responded to the lingering principal complaints users of various exchanges and the blockchain innovations have brought up in the course of the year.
More importantly, the concern for a lot of traders is the failure of many predictions concerning certain major cryptocurrencies, particularly Bitcoin which was recently ranked first in terms of transaction volume per user, amassing whopping $1.028 billion -a figure that is ten times that of Coinbase which came out first in terms of daily actual active users with 422,000 users.
In the wake of market instability and trading fluctuation that have nearly crippled cryptocurrencies evangelists’ dreams of attaining massive adoption this year, there are growing concerns about whether or not the major virtual currencies will meet analysts’ predictions and projections in terms of price and value.
The hope has undoubtedly been kept on the downtrend following the split that happened to Bitcoin Cash Network after its upgrade, resulting in the emergence of Bitcoin Satoshi Vision and Bitcoin ABC –a fork that has sparked a “civil war” of sorts in the last 1.5 months.
So, a review of two of the major predictions that were targeted at Bitcoin becomes important to help traders develop a more realistic outlook, as well as determine if those predictions would come true in the next three weeks.
It is important to remind readers that these projections were largely based on bitcoin’s impressive performance in the last quarter of of 2017 when it reached its peak of $20,000.
Also, the analysts based their prediction on the speculation that institutional investors and investment fund would adopt the currency and pump some cash into it.
Fundstrat’s Chief Executive officer, Thomas Lee earlier in the year, predicted that bitcoin could rise to as much as $25,000 from its miserable current market price of $3,346. His recent revision of the predictions put the value down to $15,000.
Then there’s the prediction by Anthony Pompliano, Founder and Partner at Morgan Creek, who had said that bitcoin’s price would rise to a whopping $50,000.
Clearly, going by the fact that there’s only three weeks left in the year, there is no guarantee that its price would even be near Pompliano’s ‘outrageous’ projections.
Timeline Of Market Value Dip In 2018
2018 has been continually riddled with so much market uncertainty and trading instability. This situation has dealt a series of blows to not only bitcoin, but also all major cryptocurrencies in the market.
The beginning of such drop in market value could be attributed to severe phases of technical difficulties-including slow transaction speed, high power consumption, lack of data security, and so on- and the endless lingering crisis of the bear market.
There were also rumors that Goldman Sachs would no longer be willing to continue with its crypto trading products for its customers.
This fake news probably contributed to bitcoin’s continued price slump –maybe even triggered the new bottom?. However, other issues such as delay of Bakkt as well as the SEC’s tougher stance on digital assets, contributed to the current state of digital assets.
Previous predictions are obviously synonymous with chasing shadows and any future prediction between now and the end of the year can only be limited to hours and days. By that time, charts may no longer play any useful role in determining where BTC can end in terms of market value by the close of business in 2018.
In fact, a reputable crypto analyst, Lou Kerner, strongly believes that the die seems cast and that no predicitons whatever can influence the price of bitcoin or other cryptos positively.
“The weather in a month can’t accurately be predicted because that forecast has to take into account a number of large-scale phenomena, each of which is governed by multiple variables and factors,” Kerner, Partner at Crypto Oracle says.
This then begs the question every bitcoin trader is asking:
“What will be bitcoin’s value by December 31st, 2018?”
It appears that for many of these traders, only a clear cut answer will douse their apprehension and give them a sense of direction going into the New Year.
In answering this all important question, Kerner suggests three things that could happen to bitcoin’s market value:
- Kerner insists that Bitcoin could fail as a store of value. In that sense, BTC becomes toast.
- Bitcoin could surpass gold in terms of store of value. In other words, each Bitcoin could be worth $145,000 following the total amount of gold bullion which stands at $3.1 of market cap.
- The third possibility according to Kerner is that Bitcoin will take silver as a store of value.
In any case, the year has not been favorable for BTC and many other digital assets and it is not likely that there will be a meeting point between the year-end price of bitcoin and the predictions earlier given by analysts.
One can only wish that the market picks up in the first quarter (Q1) of 2019 when some of the major technical and strategic issues plaguing the market would have been hopefully resolved. This is the only solution that can start and ensure bitcoin’s -and by extension- crypto’s mass adoption.