Trefis Team Prediction Market Software Forecasts Bitcoin (BTC) at $8,500 by 2019, Bullish on ETF Approval
Trefis Team Says Bitcoin Will Reach $8,500 Dollars Before 2019
The company Trefis Team, that offers a software that predicts movements in the markets, believes that Bitcoin (BTC) would reach $8,500 dollars by the end of the year. In the last days, the market has recovered and the sentiment is bullish for the middle and long term.
At the moment, Bitcoin is trading around $6,500 and has a market capitalization of $112 billion dollars. However, during the last weeks, most of the market lost an important part of its value due to several negative news. For example, Goldman Sachs announced that it was going to delay the plans for its crypto trading desk. Later, the company said that they did not suspend their plans for a crypto trading desk.
The predictions made by Trefis are based on the overall transaction volume for Bitcoin. Moreover, they also take into account the total number of users on the blockchain. Additionally, they claim that their predictions are 94% accurate.
It is important to mention that they use supply and demand to determine the price of Bitcoin. The famous cryptocurrency is a deflationary currency that has a fixed supply compared to fiat currencies.
The calculations made by the company mean that the famous virtual currency would finish the year with a 30% increase compared to current prices. An important thing to take into account is the general sentiment that is dictated by the news about virtual currencies. This is why in 2017 the price moved from $1,000 to $20,000 dollars.
Moreover, the price of the famous virtual currency fell when exchanges were hacked or when the U.S. Securities and Exchange Commission, decided to postpone the approval of a crypto exchange traded fund (ETF).
At the moment, Trefis believes that the approval of a Bitcoin ETF by the SEC would be one of the most important catalysts for Bitcoin and the cryptocurrency market to grow. The final decision by the SEC about a crypto ETF could be taken before February 2019.