Bitcoin Price Prediction: 50,000 USD by the End of 2018?
There have been a lot of developments in the cryptocurrency markets and crypto regulation in both Europe and the US is becoming more concrete. Cryptocurrencies are now being accepted as here to stay by most governments around the world and regulations are being put in place.
1 in 5 financial institutions are considering investing in cryptocurrencies this year according to Thompson Reuters.
But, first, let’s start with SEC classification and regulation of cryptocurrencies…
SEC: Bitcoin is a Currency
In an interview with CNBC, the SEC Chairman, Jay Clayton clarified the SEC’s stance on cryptocurrencies.
Here are the main takeaways:
- Bitcoin is a cryptocurrency and not a security
- Tokens such as ERC-20 tokens on the Ethereum blockchain and most ICOs are securities, so will be regulated by the SEC
- The SEC is calling cryptocurrencies a new asset class
- No change to current regulations will be coming. It will all be handled under current law
- Bitcoin is a currency that can replace fiat currencies such as the USD, EUR, GBP, Yen, etc.
- Distributed Ledger Technology, for example, the blockchain, can drive efficiency and reduce costs
- ICOs launching in the USA will have to inform the SEC and follow private placement rules. These are known as Security Tokens Offering (STOs). You will need to file financial statements and public disclosure
- The SEC has appointed their first ever Cryptocurrency Chief, Valerie Szczepanik
- The SEC has a cybersecurity task force who understand hacking and the dark web
Bitcoin is in a Bear Market
Yes, we are currently in bear market since Bitcoin hit $20,000 on December 17th, 2017 and we are now under $7,700. The price of Bitcoin was only $900 in January 2017 and $440 in January 2016. Click here for Bitcoin price history.
We may see another small sell off, then I expect accumulation followed by a bull market in Q2 2018 finishing the end of the year above $50,00. The wily Tom Lee at Fundstrat is known for his valuations of Bitcoin. Here is his expert analysis. ICOs have raised $10 billion this year, more than double last year. The floor for Bitcoin should be the Bitcoin mining price which is around $6,000.
Bitcoin Price Could See $50,000 at the End of 2018
Here is an interview with Bitmex Exchange’s charismatic CEO, Arthur Hayes. Bitmex is a well known exchange that allows leveraging of Bitcoin trades at up to 100:1 leverage.
Why a Bull Market is Coming Soon
The Top 15 Reasons Why a Bitcoin Bull Market Will Arrive
- Capitulation after a steep market sell off: this has been the worst Q1 in Bitcoin history
- Seasonality: bitcoin has always outperformed in Q2
- Annual development cycle is unfolding
- We are reaching accumulation stage
- Tax season ended on 17th April in the USA: with cryptocurrencies down 50% from December 2017 highs, tax payers had to sell twice as much crypto to cover their capital gains taxes
- South Korea: after a lot of negative press about banning bitcoin, the South Korean government are only banning anonymous trading and regulations are set
- Regulation clarity is improving, especially in the US and EU
- Governments are accepting cryptocurrency markets are here to stay
- Bitcoin uncertainty mostly behind us as Segwit activated
- Code improvements: the code for Bitcoin, Ethereum and other coins is continuing to improve and wallets are becoming easier to use
- Cryptocurrency debit cards have arrived: Monaco and Spectrocoin cards are here with others on the way, notably TenX once they have worked out new partners after Visa suspended Wavecrest’s membership effectively closing many crypto cards being issued, but now that is behind us
- $5 trillion forex market is coming*
- Ethereum Futures are coming
- Bitcoin ETFs are coming
- The masses haven’t arrived: Less than 1% of the world’s population are invested in cryptocurrencies
- ICO explosion: Double the amount flowed into ICOs this year
With the launch of the Trade.io (TIO) who have done a deal with Primus, a large forex broker spanning six countries, who have $350m under management and B2BX who will connect 1,000 forex brokers, the bull market will take off when this $5 trillion forex industry comes knocking at the door, which will be towards the end of this year or beginning of next year.
Ethereum will likely launch Plasma and sharding by the end of 2019 as well, which will take Transactions Per Second up to possibly 1,000,000, crushing Visa, who typically settle at under 2,000 transactions per second. Click here to learn more about cryptocurrency transaction speeds.
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Cryptocurrency & Blockchain Enthusiast | Licenced and Regulated Investment Manager
Cryptocurrency trading is highly speculative. The long term outcome is unknown. Any information contained in articles is for educational purposes only and is not investment advice. Please consult with a financial adviser before making any trading decisions.