Hello dear, today I am taking about the increasing price of bitcoin.
Arthur Hayes, the Co-Founder and CEO of BitMEX, a Peer-to-Peer Trading Platform that offers leveraged contracts that are bought and sold in Bitcoin predicts that the pioneer cryptocurrency will sell for at least $50,000 by the end of 2018.
Hayes made his prediction while speaking on the CNBC Fast Money show on June 29 2018. This prediction has been described as a “SuperBowlish Forecast”.
Volatility depends on Price:-
BitMEX is the world’s largest cryptocurrency exchange by volume, and Hayes says that his company has so far tripled its total trading volume of 2017 already in what he describes as a great year.
While a lot of people may assume that cryptocurrency volatility, especially Bitcoin is simply all about price movement, Hayes, whose company actually thrives on volatility explains that the slump in price actually reduces the level of volatility in the market. Hence, for the market to be vibrant, increased capitalization is necessary.
Hayes expresses confidence in the predicted trend reversal citing historical patterns that have seen Bitcoin post some significant corrections in the past. In his opinion, the cycles are even expected to happen quicker these days considering the increased volume being traded in the market.
One of the key positive regulations that Hayes suggest will trigger this forecasted bullish rum for Bitcoin is the ETF. He notes that the ETF will bring real money to the table, as primary dealers have to go and get inventory, and there will be subscriptions for real money to buy the asset.
One step away:-
According to Hayes, the cryptocurrency is just one positive regulatory decision away from climbing through $20,000 on its way to $50,000 by the end of the year.
Considering the slump in price that Bitcoin has experienced for most part of 2018, Hayes remains bullish, noting such as a normal correction.
If you think what is ETF :- An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated once at the end of every day like a mutual fund does.
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