Spring 2018 has just started and it is high time to take a look at some of the 2018 Bitcoin Price Predictions from the most experienced industry experts. What awaits Bitcoin in 2018?
CryptoToday – Last year, Bitcoin price has hit the $20,000 level, while now one BTC is trading at $10,781.90. Due to the crazy price fluctuations, many investors are wondering what 2018 is going to be like for this cryptocurrency. Considering the numerous factors that affect Bitcoin price, no one knows for sure what is going to happen to the cryptocurrency market in 2018.
2018 Bitcoin Price Predictions
However, some of the market insiders believe that 2018 might be just the best year for the cryptocurrency market. Besides the positive outlook, investors are concerned about whether Bitcoin will see a major price correction or grow steadily in 2018. In fact, both scenarios are quite possible.
Back in November 2017, Bitcoin price has dropped almost 30% just to spike to $10,000 later. Such movements in prices have signaled that the market participants were feeling anxious, while a number of new investors have bought the dips and joined the market on the fear of missing out (FOMO).
Many of the Bitcoin analysts are attempting to look into the future price of Bitcoin. One of the suggestions states that the market is most likely to remain highly volatile and speculative. What is going to drive Bitcoin prices in 2018?
Bitcoin Fundamental Price Drivers: Supply and Demand Forces
Some of the analysts believe that it is possible to forecast cryptocurrency price movements by analyzing the current factors of supply and demand. For instance, David Drake, the founder of LDJ Capital believes that Bitcoin will hit $20,000 this year. He has based his Bitcoin price forecast on the factors of the limited supply of Bitcoins. He has stated:
“There’s a fixed supply of it but growing demand, when that happens the price rises.”
Mr. Drake has also highlighted that the code underlying the creation of new Bitcoins is limited to 21 million. However, there are only 4.3 million of them are above the current supply.
Back in November 2017, analyst Ronnie Moas, who is also a founder of Standpoint Research, Inc., has shared his updated Bitcoin price outlook. He has revised his 2018 Bitcoin price forecast from $7,500 to $11,000. Then, after some time he has again revised his prediction to $14,000. Furthermore, in early December, he has updated his 2018 Bitcoin price prediction to $20,000.
Mr. Moas has based his outlook on the fact that the market capitalization of Bitcoin is now relatively small in comparison to the $200 trillion currently in stocks, cash, gold, and bonds. He has also noted that Bitcoin investors anticipate a number of positive developments in the cryptocurrency market in the near term.
Bullish on Bitcoin?
Another 2018 Bitcoin price prediction comes from the managing partner at Fundstrat Global Advisors, Tom Lee. Mr. Lee has recently updated his mid-2018 Bitcoin forecast from $6,000 to $20,000. In addition, Mr. Lee believes that Bitcoin is soon going to face a short-term price correction. However, he also noted that “Bitcoin’s longer-term technical trend remains positive.”
Tom Lee’s optimism is backed by a short-term valuation model that he has created. The model is based on the Metcalfe’s Law, which implies that the value of a network is equal to the square of the number of users on the network. Speaking differently, Mr. Lee believes that the value of Bitcoin will increase as more investors join the market.
Another Bullish Bitcoin supporter, Michael Novogratz, has stated the following:
“Bitcoin could be at $40,000 at the end of 2018. It easily could.”
Mr. Novogratz has based his Bitcoin price outlook on the belief that Bitcoin will be perceived more as a currency following the Bitcoin futures market development. Yet, just like Mr. Lee, he believes that cryptocurrencies might face a highly volatile future in the near terms, with some price corrections accounting for 50%. As he has recently stated:
“There will be wild crashes in it because you’re going to get to levels so far ahead of where the technology’s at. It makes investing really, really exciting, but difficult.”
The most bullish of all the Bitcoin Bulls, John McAfee
The cybersecurity pioneer John McAfee is known for his extraordinary positive outlook in regards to Bitcoin. The ex-Libertarian candidate for the US President has earlier stated that Bitcoin has the potential to rise to $5,000 in 2017 and then to $500,000 by 2020.
However, considering the crazy Bitcoin price movements during 2017, McAfee has updated his Bitcoin forecast, stating that Bitcoin price will hit $1 million by 2020.
A Crash in the Short Term?
Some other cryptocurrency market analysts are also bullish on 2018 Bitcoin price predictions, yet they warn market participants of a possible crash. An investment adviser at ASR Wealth Advisers, Shane Chanel, states that Bitcoin is able to reach $15,000 by the end of 2018.
Chanel also stressed that any difficulties with Bitcoin futures might create a “dramatic short-term tumble.”
2018 Bitcoin Price Predictions – Summing up
While the majority of 2018 Bitcoin price predictions are bullish, analysts do not fail to mention the possibility of a price correction in their forecasts. In addition, these analysts are constantly updating their outlooks.
These factors point out the highly speculative nature of cryptocurrency investments.
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