The beginning of 2018 turns out to be very intensive for the cryptocurrencies. Bitcoin, along with Ethereum and Ripple has entered a major correction. On Wednesday, January 17, 2018, Bitcoin dropped more than 40 percent of its December high to below $10,000 per unit. Two second major cryptocurrencies have also been in the period of falling prices and exhibited a negative trading dynamics.
The aggressive government policies pertaining to mining practices have stepped up concerns within crypto community. South Korea and China might be considered the motherland of digital currencies as the Eastern exchange platforms always have a great impact on altcoins trading price.
As soon as the regulation authorities of both countries had decided to keep the crypto activity under control and introduced the draft to ban cryptocurrency, the market reflected immediately and all cryptocurrencies dropped.
Given the fact the attempt wasn’t successful, the crypto market is still suffering from instability and recovering from the major sell-off. However, despite especially high level of market inherent volatility, Bitcoin’s enthusiasts remain positive and predict significant rise in the future.
As have been previously mentioned, all forecasts are about a meteoric increase differ only the high of the benchmark Bitcoin is going to hit. For example, Kay Van-Petersen, an analyst at Saxo Bank, who predicted the rise of Bitcoin on its earlier stages, now has made a new prediction: he expects Bitcoin to reach between $50,000 and $100,000 in 2018. His previous forecast regarding Bitcoin price was correct, whether the new one comes true remain to be seen.
Another Bitcoin fan, Tom Lee, once already has made out his own model for valuing Bitcoin. It has reported Bitcoin to move up a $25,000 price target by four years, from 2022 to the end of this year. Recently he has changed his mind and now predicts the digital cryptocurrency to double in 2018 and hit $25,000.
Lee commented on this statement: “We expect bitcoin’s major low to be $9,000, and we would be aggressive buyers around that level,” Lee added. “We view this $9,000 as the biggest buying opportunity in 2018.”
Additionally, Lee has set up price target for Bitcoin major competitor, Ether. He expects Ethereum to reach $1,900 by the end of this year. For the framework, Tom Lee scopes up the market and analyzes the supply-demand ratio to calculate market capitalization. He also focuses on the ratio of the alternative assets such as gold to money supply and Bitcoin’s share of those alternatives.
However, stunning the figures on these crypto predictions may be, Bitcoin now is trading for $11 691.60, according to the CoinMarketCap, while Ethereum is worth $1065.28 and Ripple makes up $1.62. All cryptocurrencies slightly fall in price within last 24 hours.