Several analysts say that during the next few months there will be a bull run - a bullish market trend in which asset prices are rising - in the crypt currency market, especially bitcoin, which could shoot up to 150,000 dollars (more than 130,000 dollars). But, in such a volatile market, how much can one believe that forecast?
Investors are not forgetting the great growth that the crypto-currency had in previous years: from 0.003 dollars (0.0027 dollars) in March 2010, it went on to be exchanged for almost 19,800 (more than 17,000 dollars) in December 2017, which is still its historical maximum. The combination of the initial boom and FOMO (Fear Of Missing Out) has characterized each project, with the hope that bitcoin gains would be reflected, explain Coin Telegraph.
So far this year, cryptocurrencies have behaved similarly to other assets: they fell sharply in March due to the coronavirus crisis but have recovered and are now trading back to February levels. In fact, from its lowest level this year, below $4,000 in mid-March, bitcoin has risen 86% and Ethereum 123%, while the S&P index has only risen 37%, according to data provided by SEA Business School professor Marc Sansó.
Now, after May's halving, many estimate that it could go up.
Simon Dedic, the co-founder of Blockfyre, a cryptanalysis company, believes that "the bitcoin will reach 150,000 dollars" (more than 130,000 dollars), an increase of 1,400 % compared to the values in which it moves this week, according to the Coin Telegraph. For the Ethereum, it forecasts a rise of 3.570 %, from around 245 dollars (around 217 dollars), where it is currently trading, to 9,000 (almost 8,000 dollars), as well as the director of Blockchain's master's degree at IEBS, Raul Jaime, who believes that the bull run is imminent and should begin before the end of 2020.
In the same vein, eToro analyst Simon Peters argued in a recent report that "halving precipitates a bull rally in cryptocurrencies, which can reach highs of $100,000 or $120,000 (between 88,000 and 106,000 dollars) in 18 months". "There is always the possibility that it will fall, but this is probably due to the appearance of another black swan, for example, the worsening of the COVID-19 pandemic," he said.
Bitcoin can also reach that amount but over a longer time frame. Eurocoinpay's CEO, Herminio Fernandez, has explained that cryptocurrencies will reach that level as the general public adopts it as payment or invests in it as a store of value.
