As the surge for Bitcoin, one of the largest virtual currencies continues, those who invested in this crypto coin could be rewarded about $25,000 before the year comes to an end. According to one of the founders of a sector research and strategy firm, the investors of Bitcoins could also pocket about $20,000 by mid-2018.
Bitcoin Will Essentially Triple
Tom Lee who is among the individuals who started the Fundstrat Global Advisors, Bitcoin is expected to witness a great resurgence and attain figures that capitalists will really like. This is despite a long duration of free-falling prices that has been experienced in the market. Mr. Lee went ahead to state that in the next five months, this largest cryptocurrency by market capitalization would triple the price that it currently has.
He also observed that Bitcoin remains the most liquid and important virtual currencies that are currently being traded on. This is why they have continued to be very constructive in this new sensation that has taken the financial sector by a storm.
The risks that are currently reported in almost all crypto assets could create a great correlation between the virtual currencies and those who have invested in the global market. This implies that as the cryptocurrencies values continue to precipitate, the traders might have been demoralized from other assets that appear risky in nature.
Mr. Lee continued to note that he wouldn’t be shocked if the capitalists who observed risks on all assets outperforming on an international level were also in the business of purchasing the virtual currencies.
As the weakening of Bitcoin began and the risks were removed from them, the investors opted to give up some of the gains they had achieved so far. That is why the connection that exists between the two factors appears to be so limited.
Bitcoin’s Stability Will Come After Further Falls
Just barely a week, S&P 500, which is a touchstone in its own way declined to 4.1%, while the Dow went down by 4.6%. The two major points of reference in this market; the Dow and S&P 500 experienced some of the biggest percentage falls since August of 2011. This happened at a time when a much-anticipated fallback from record highs continued to go even further deep. Tom Lee observes that just as the equities have witnessed a great increase in the number of investors it has, it has also been the same for the virtual currencies.
He refreshed his memories to about a year ago when there was both a strong rally in the virtual coins as well as the equities. This appears to be a thing of the past at the moment.
Just over a month ago, 17th December 2017 to be precise, Bitcoin attained its highest price of $19,535.70. It would later decline to the low price that it currently has. However, on the sixth day of January 2018, a short resurgence on the price of this crypto was seen before it went back to a free fall.
After witnessing a 9.86% rise in price in this past week alone, all indications show that Bitcoin is on the road to recovery.