Bitcoin is starting to undergo drastic fluctuations once more and some analysts are now predicting that its value could rise to the $8,000 mark by the summer. The largest cryptocurrency enjoyed a lengthy period of stability for the first two months of 2019 and the price was not moving much on a daily basis.
The war between bulls and bears rages on, but it seems as though the bulls are beginning to take control again, and it is seeing gains backed by higher levels of volume. It has performed strongly against the US dollar and seen solid volume across major markets such as the US and Japan, so proponents are now full of excitement.
Leading analyst PlanB argues that BTC could reach a valuation of $8,000 to $10,000 by May after extrapolating the potential price by taking historical trends into account. It is becoming increasingly widespread, as a growing number of retailers, sports betting sites and other online businesses all accept Bitcoin. Even British financial historian Niall Ferguson, one of the staunchest early critics of the cryptocurrency sector, now admits that he was wrong to say that Bitcoin would turn out to be a complete delusion.
“I was very wrong,” he said. “Wrong to think there was no use for a form of currency based on blockchain technology. If I had listened to my son, I would have increased the dollar value of my investment by a factor of 45 – or, if you prefer, I’d have made a return on the investment of 4,436%. The moral of the story is clear: when it comes to technology, pay heed to teenagers.”
Teenagers are a lot more inclined to use BTC, as they are technologically savvier than the older generations. They are the future and Ferguson now freely admits that crypto can become the financial system of the future
Perhaps it has been offset by Twitter founder Jack Dorsey emerging as a huge champion of Bitcoin and the cryptocurrency movement in general. This week he snapped up Trezor to store his Bitcoin, and he has been using the social network to educate people about its importance. He believes it will become the Internet’s first native currency.
“What that person does with that realization is amazing,” he said. “It feels like that just accelerates things even faster. So I think there’s a massive acceleration that’s going to happen within the next 10 years. I don’t wait around for that to happen to me or to us as a company. I want to help make it happen.”
The crypto market is now starting to see drastic fluctuations again after a lull at the beginning of the year. It is seeing rapid price action and many claim the stage is being set for a rally. This past week, we have seen the most buying volume since the last week of 2017, when BTC went close to $20,000 amid a blaze of media interest. “Don’t think we have ever seen four straight weekly bars with that much buying volume,” said one analyst, known as Financial Survivalism. “Tells me we are in for a strong bounce and that there will be immense selling pressure if we breakdown support.”
Some believe it will reach $5,000 by May and others are willing to go to $8,000 or even $10,000, but the market seems in the grip of the bulls now and it may finally provide healthy gains for investors after a tumultuous 14 months.
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