Bitcoin Price Predication: If only Bitcoin hits $10,000
The recent bearish run only serves to show the impact that Bitcoin price has on other cryptocurrencies. Bitcoin (BTC) currently trades at $8,776, dominating the market share at 35% of the total market capitalization. The Satoshi-born cryptocurrency commands a $143 B market cap at time of press, which represents an upturn from the recent cryptocurrency bloodbath that saw the market cap dip from an all-time high of $350 B to $103B ( a 70% decrease).
Earlier this week on Monday, Bloomberg Technology published an article, on Bitcoin (BTC) risking to crash to $900 and not the targeted $9000. The article predicts that bitcoin price will continue falling in the years to come due to the increasing supply of other cyptocurrencies over time. Personally, I do not agree with the sentiment given that BTC derives its use from buying other cryptocurrencies and merchant transactions.
“Bitcoin has already slashed more than half of its price…, the cryptocurrency could plunge a further 90% in an environment of unsustainably growing supply.”
First, the question that the coin may reach $900 before $9000 is utterly confusing given the coin’s past surge from the $8,000-mark to the $9,000 mark in only a week in November 2017. The coin then flew past to the $10K psychological mark only two days later. The coin’s price went on to hit an all-time high of $19,535 on December 17th 2017 according to Coinmarketcap. However, after the ban of cryptocurrency trading in China, reports that South Korea and India may ban crypto trading affected the market in general causing a massive selloff of cryptocurrencies. The bitcoin price in the first week of February fell below the $5,000 mark on most exchanges.
Measures taken in early February 2018 by major banks within the USA and other jurisdictions such as South Korea on regulating cryptocurrencies have affected bitcoin (BTC) value amongst other digital currencies. A move towards banning the use of credit cards to purchase cryptocurrencies is also among the factors that heavily contributed to the bearish behavior seen at the beginning of February 2018. However, this does not apply to all countries since in Australia the use of credit cards to purchase digital currencies is still allowed.
Experts in the field predict that bitcoin price will eventually be corrected by market forces but may take a while. This offers hope to most of the ‘hodlers’ especially after the price of Bitcoin has since been steadily rising from the recent February slump recording excellent returns in the past week.
I however believe that the prospect of Bitcoin hitting the $10,000-mark by March is still very possible. Bitcoin is still the most widely used crypto in buying other coins. The increase in supply of other cryptocurrencies only serves to offer more cryptocurrencies to trade using the coin. In 2017 alone, the total number of cryptocurrencies in circulation increased by over 120% bringing the total number to over 2000 cryptocurrencies. The daily average volume of bitcoins traded in the same period increased by over 600%. This shows the increase in number of tokens/coins may be positively correlated to the volume of bitcoins traded. This year promises to be the breakout year for smaller cap cryptocurrencies, giving Bitcoin even more legitimacy to its price increasing.
The prospect of reaching $10K before the end of the year caused an influx of buyers of the cryptocurrency. This increase in the investors who bought the coin out of FOMO or due to psychological patterns in this field caused an even greater increase in the bitcoin price. This is an important factor that helped Bitcoin (BTC) skyrocket to $20,000 in slightly less than 2 months.
This time round the impact may not be as huge as what we witnessed towards the end of the year. However, as more investors eye the $10,000-mark with fear and doubt alike, reaching this price level will shake up the market once more offering a promise to new greater heights.