Even the skeptics cant avoid weighing in onbitcoin.
It seems like everyone is coming up with a price forecast these days, with some of the biggest banks including Goldman Sachs Group Inc. jumping into the action, while speculators to long-time investors are also making their bets.
The consensus is that the biggest cryptocurrency will face some resistance around $4,500 to $4,800 and correct, to then continue rallying. How high? Pantera Capital Managements Paul Veradittakit, Tom Lee at Fundstrat Global Advisors and John Spallanzani at GFI Group Inc. see it going to $6,000 by year-end, while Ronnie Moas at Standpoint Research says it will keep rising to $7,500 in 2018.
Bitcoin has been on a tear this year, more than tripling in value as it crossed the $4,000 mark and touched a record $4,477 last week. Its since retreated about 7 percent from the high as investors took profit and assessed whether the rally had gone too far. Growing adoption and institutional investor interest, agreement on a mechanism to speed up transactions and regulatory steps that will help the asset broaden its reach are some of the reasons that explain the gains.
Were in a very healthy position right now, saidVeradittakit, vice president of Pantera Capital, which has invested in bitcoin since 2014. Theres a lot of interest from traders and mainstream finance on the rise of all these new crytpo currencies, but when they first get exposure into the space, theyll go into bitcoin. It has the most liquidity and biggest brand name.
Veradittakit said bitcoin will hover around current levels and rally further once the underlying technology is upgraded in November, when the block size in the bitcoin blockchain is set to double to two megabytes, increasing transaction speed. Hes also encouraged by reports from the local exchanges Pantera invests in that cross-border transactions are increasing.
Read more about the bitcoin development dispute
But the road ahead might get rocky. Goldman Sachs technical analyst Sheba Jafari wrote in a note to clients Aug. 13 that bitcoin coulderase around 40 percent of its value after reaching $4,827. On a separate note, Goldman Sachs analysts said the space is getting big enough at over $100 billion in market capitalization that it warrants watching.
Spallanzani, chief macro strategist at GFI Group, also predicts a sizeable fall to as low as $3,000 unless it manages to break the $4,500 level it tested last week. But then it should rebound and climb to as high as $10,000 in 2018, he said.
It will have to retrace a bit more before we have enough power to break through, Spallanzani said. He recommends buying bitcoin when its above $3,800 and selling when its below that level.
Not everyone is so bullish. Roy Sebag, who said he first invested in bitcoin in 2011, said he sold most of his 17,000 bitcoin between May and June because he believes the long-term value will be zero.
Its completely devolved from the original promise, said Sebag, founder and chief executive officer of Goldmoney Inc., which oversees about $2 billion of assets. Bitcoin and cryptocurrencies in general are exhibiting a mania, fueled by speculative fervor.
Amid the frenzy, some analysts have steered clear of making price predictions, while still dipping their toes in bitcoin waters.
Read more on how to get exposure to bitcoin without owning it
Tom Price, a Morgan Stanley equity strategist, said bitcoin compares to gold in that both offer similar benefits as a store of value, such as being fungible, durable, portable, divisible and scarce. Still, a lot of time and trust-building will be needed before it becomes clear whether bitcoin will also undermine demand for the metal, he said.
Exclusive insights on technology around the world.
Get Fully Charged, from Bloomberg Technology.
Cryptocurrencies including bitcoin are still very volatile and thus not particularly safe, but that could change as their value rises and liquidity increases, wroteBank of America Merrill Lynch strategists Martin Mauro, Cheryl Rowan and Matthew Trapp earlier this month. They score well when it comes to diversification, as their correlation to equities, bonds, commodities, currencies or selected measures of risk is near zero, the strategists said.
More longer term, bitcoin will climb to$25,000 by 2022, Fundstrats Lee said, as recent regulatory approval for options trading and settlement implies a significant rise in institutional holdings of bitcoin, while he estimates user accounts are likely to rise 50 percent and usage per account to climb 30 percent.
Moas of Standpoint Research said in an Aug. 14 report that bitcoin could rise to $50,000 by 2027 as he expects cryptocurrency users will grow to as high as 100 million users from 10 million today in the next couple of years.
It looks to me as though we are at the same point in the adoption curve as we were in 1995 with the Internet, Moas wrote. Cryptocurrency is becoming more widely accepted by the day.
- Bitcoin Fees Have Become Infeasible - Bitcoin News - December 23rd, 2017
- Bitcoin's incredible surge takes it above $9,500 - Nov. 27 ... - November 27th, 2017
- Warning Signs About Another Giant Bitcoin Exchange - November 23rd, 2017
- What Is Bitcoin, and How Does It Work? - The New York Times - October 6th, 2017
- Why Beanie Babies make for a better investment than bitcoin - MarketWatch - September 5th, 2017
- Bitcoin's price hit $5000 last week. It's still a dumb investment - Los Angeles Times - September 5th, 2017
- Bitcoin dips another $300 after China's cryptocurrency crackdown - CNBC - September 5th, 2017
- IRS Eyes Profits From Bitcoin and Bitcoin Cash Investments - Investopedia - September 5th, 2017
- Sequoia, IDG to Invest in China Bitcoin Mining Giant - Bloomberg - September 4th, 2017
- Bitcoin Price Drops By Over $250 as Crypto Markets Lose Billions - CoinDesk - September 4th, 2017
- Bitcoin $5,000: Currency Hits New Record High | Fortune.com - Fortune - September 2nd, 2017
- Bitcoin Drops Below $5000 as Crypto Markets See $13 Billion Sell-Off - CoinDesk - September 2nd, 2017
- Searching for the future of currency, major companies try Bitcoin technology - PBS NewsHour - September 2nd, 2017
- Bitcoin Mempool is Empty and High Transaction Fees are no Longer Required - newsBTC - September 2nd, 2017
- Literally just one huge chart showing bitcoin's incredible rise to $4800 - MarketWatch - September 2nd, 2017
- Bitcoin's nearly five-fold climb in 2017 looks very similar to tech ... - CNBC - September 2nd, 2017
- BTC-e's Big Claim: Bitcoin Withdrawals to Begin Tomorrow - CoinDesk - CoinDesk - September 2nd, 2017
- As bitcoin surges in price and popularity, so do the complaints - CNBC - August 31st, 2017
- Here is how Indians are minting a fortune in bitcoins - Economic Times - August 31st, 2017
- Why Miners Are Mining Bitcoin Cash and Losing Money Doing It - CoinDesk - August 30th, 2017
- Bitcoin jumps nearly 70% for August to record high, offshoot 'bitcoin cash' falls to more than one-week low - CNBC - August 30th, 2017
- Bitcoin Foundation seeks legal protection from US currency regulation - The Independent - August 30th, 2017
- Bitcoin's epic rise leaves late-1990s tech bubble in the dust - Economic Times - August 30th, 2017
- 99Bitcoins | Buy Bitcoin, Bitcoin Guides & Reviews for ... - August 29th, 2017
- Dark web finds bitcoin increasingly more of a problem than a help, tries other digital currencies - CNBC - August 29th, 2017
- Bitcoin Meets Zcash: Developers Test Tool for Trustless Trades - CoinDesk - August 29th, 2017
- Russian Regulator: Bitcoin Should Be Limited to 'Qualified Investors' - CoinDesk - August 29th, 2017
- As bitcoin and rivals surge, so too have complaints to the CFPB - MarketWatch - August 29th, 2017
- Is Bitcoin the New Gold? - TheStreet.com - August 28th, 2017
- This Swedish guy bet all his life savings on bitcoin and it made him 100 times richer - Business Insider Nordic - August 28th, 2017
- How To Gain Bitcoin Exposure Inside Of Your Traditional Brokerage Account - Seeking Alpha - August 28th, 2017
- Value of all digital currencies hits record around $160 billion as ... - MarketWatch - August 28th, 2017
- Why Motherboard Is Capitalizing 'Bitcoin' Again - Motherboard - August 28th, 2017
- New Bitcoin.com Charts: The Bitcoin Ecosystem at a Glance - Bitcoin News (press release) - August 27th, 2017
- Expert Predicts Bitcoin Will be Worth up to $20000 in the Next Three Years - Futurism - August 27th, 2017
- Does Bitcoin Have a Mining Monopoly Problem? - Fortune - August 27th, 2017
- Bitcoin poised to challenge record after recovering from correction - MarketWatch - August 26th, 2017
- Bitcoin Prices Rise But Fall Short of All-Time High - CoinDesk - CoinDesk - August 26th, 2017
- Bitcoin and Artificial Intelligence Can Help Fight Sex Trafficking ... - Fortune - August 26th, 2017
- Bitcoin Investors, Beware: The IRS Is Coming for Your Vast Riches - TheStreet.com - August 26th, 2017
- Bitcoin's Lightning Network Moves Closer to Compatibility - CoinDesk - CoinDesk - August 26th, 2017
- A sketchy Satoshi has popped up to promote his new blockchain - The Verge - August 26th, 2017
- Bitcoin And Why You Think You're Right (Even When You're Wrong) - Seeking Alpha - August 26th, 2017
- Bitcoin and Ether rise, helping take crypto space above $150 billion market cap - MarketWatch - August 23rd, 2017
- Bitcoin Prices Are Up Over $100 Already Today - CoinDesk - August 23rd, 2017
- MGT Capital Raises $2.4 Million to Expand Bitcoin Mining Operation - CoinDesk - August 23rd, 2017
- Hackers Swipe Bitcoin by Stealing Your Cell Phone Number First - Inc.com - August 23rd, 2017
- Bitcoin rebounds after briefly entering correction territory - MarketWatch - August 22nd, 2017
- Here's Why Bitcoin Rose More than $1000 in Two Months - Futurism - August 22nd, 2017
- The IRS Has Special Software to Find Bitcoin Tax Cheats - Fortune - August 22nd, 2017
- Bitcoin Prices Dip Below $4000 to Hit 7-Day Low - CoinDesk - August 22nd, 2017
- China's two biggest bitcoin exchanges helped themselves to $150 million in idle client funds - Quartz - August 22nd, 2017
- A Bitcoin Law for Every State? Interest and Animosity Greet Model US Regulation - CoinDesk - August 21st, 2017
- Take Two: Bitcoin Miner BTCS Announces New Merger Deal - CoinDesk - August 21st, 2017
- Bitcoin About To Burst - Seeking Alpha - August 21st, 2017
- 10 Bitcoin Wallet Apps You Should Consider Using Today - HuffPost - August 20th, 2017
- Bitcoin-accepting shops leave cookie trail that crumbles anonymity - The Register - August 20th, 2017
- Bitcoin Trades Sideways as Bitcoin Cash Price Drops to $800 - CoinDesk - August 20th, 2017
- 'Bitcoin cash' surges 40% in single day as investors bet on its faster processing speeds - CNBC - August 19th, 2017
- 'Bitcoin cash' soars to record high above $900 as 'mining' profits jump - CNBC - August 19th, 2017
- Photos: Inside one of the world's largest bitcoin mines - Quartz - August 18th, 2017
- Bitcoin Surged to a New High Adding $17 Billion in Just Over a Week - Fortune - August 18th, 2017
- Another major country joins China and Japan in cracking down on bitcoin exchanges - CNBC - August 18th, 2017
- Bitcoin Cash Breaks Price Doldrums to Push Past $400 - CoinDesk - August 18th, 2017
- Poloniex and Breadwallet Will Support Bitcoin Cash Transfers - The Merkle - August 14th, 2017
- Bitcoin Price Flies To More Than $4100 Over Weekend - PYMNTS.com - August 14th, 2017
- Why is Bitcoin worth more than gold? - Independent Online - August 14th, 2017
- Bitcoin breaks $4000 - BetaNews - August 13th, 2017
- Bitcoin just passed $4000 - TechCrunch - August 13th, 2017
- Bitcoin vaults to new record above $4K, boosted by Japan and multiplying its value fourfold - CNBC - August 13th, 2017
- What is bitcoin? - CoinDesk - August 12th, 2017
- Bitcoin surges to fresh record above $3500, beats gold amid the global market sell-off - CNBC - August 12th, 2017
- 'Blockchain technology will change the world': Fidelity Labs SVP - CNBC - August 12th, 2017
- The Bitcoin Cash Hard Fork Will Show Us Which Coin Is Best - Fortune - August 12th, 2017
- Bitcoin Price Index - Real-time Bitcoin Price Charts - August 11th, 2017
- $5000 Bitcoin? 3 Reasons to Buyand to Stay Away - Fortune - August 11th, 2017
- Fundstrat's Tom Lee" Bitcoin will be the best asset through year-end - CNBC - August 11th, 2017
- Howard Marks, who has called past market bubbles, says 'I don't understand what's behind bitcoin' - CNBC - August 11th, 2017
- Commerzbank's Curious Way to Get Bitcoin Exposure Without Actually Buying It - Bloomberg - August 11th, 2017
- As bitcoin comes off its record high, the next step is to avoid a 'lightning fork' - CNBC - August 10th, 2017