Bitcoin is primed for another “price explosion” that could see the cryptocurrency’s value soar to even greater levels than it experienced in 2017, according to analysts.
Independent 24th April Anthony Cuthbertson
The price predictions come amid significant gains across cryptocurrency markets in recent weeks that have seen bitcoin rise by more than a third in value to return above $9,000 for the first time since March.
“I’m not surprised to see bitcoin’s price exceed $9,000 this week,” Rodrigo Marques, CEO of investment platform Atlas Quantum, told The Independent. “Rumours of a price explosion seem to have been driven by more and more institutional buyers getting into cryptocurrencies.”
The positive price forecast is in part informed by market activity that has seen a large increase in buy orders for the world’s most valuable cryptocurrency. As noted by Cryptoslate, buy orders compose over 92 per cent of market activity for the first time since March 2017.
At that time, bitcoin was worth just over $1,000 but quickly began to gain value, eventually reaching close to $20,000 by the end of the year.
“With so many buy orders placing pressure on the cryptocurrency market, a significant price shift is highly likely,” the cryptocurrency website states, adding that a massive price surge is “inevitable.”
Analysts have previously cited concerns about cryptocurrency regulation when explaining bitcoin’s dramatic drop in value at the beginning of 2018, which saw it lose over $10,000 over the course of a few months.
However, the right kind of regulation could in fact be a boost for bitcoin and other cryptocurrencies as it will protect investors while also exploiting their benefits.
A move towards this type of even-handed approach to bitcoin was hinted at by IMF chief Christine Lagarde earlier this month, who said bitcoin and its underlying blockchain technology could transform the way people save and invest.
Ms Lagarde’s comments preceded an upswing in the cryptocurrency markets, with other major digital currencies like ethereum, ripple and bitcoin cash mirroring and even exceeding the recent gains of bitcoin.
“Although there are ongoing regulatory concerns in key markets, they do seem to be dissipating,” Mr Marques said. “If these concerns are addressed and there is even more positive movement related to regulation in these markets, there could be even more buying pressure to come.”
Read Full Article – Independent 24th April – Anthony Cuthbertson