Bitcoin predictions: Cryptocurrencies have been stabilizing over the past three days – something rather unprecedented. Markets had witnessed Bitcoin’s upside volatility last year but found it equally volatile on the downside; the slump from $19,000 to less than $6,000 in last month alone vindicated the instability for both trends.
In spite of the massive sideways movement, returns from crypto funds topped hedge fund returns last year.
For instance, Pantera Capital, which started its first cryptocurrency fund in 2013, generated returns of 22,000 percent since its inception. Last year, Cryptocurrency fund returns were significantly higher from the average gains of 7% from hedge funds.
Why Dan’s Calculations Are Worth Considering:
Dan Morehead, the CEO of Pantera Capital, who bought his first bitcoin for around $72, is now predicting a substantial rally in price. He said, “Bitcoin should return to peak levels in the next couple of weeks and will continue growing from there.”
In December, Dan predicted bitcoin price to fall by half before rising back up. The first part of his prediction turned out to be true and now traders are carefully thinking about the second part of his prophecy.
What Could be the Potential Prospects for a Sustainable Rally?
Bitcoin and other digital currencies are showing strong support trading around their current level.
The entire cryptocurrency market has been flat over the last three days; seems it is looking for solid reports to make a new trend.
Some analysts are now correlating the movement of crypto markets with stock markets, expecting prices to trade in similar trends. This assumption could be partially correct as the overall market sentiments offer support to the whole investment markets.
Last year, the rally in tech, financial and industrial stocks combined with Trump’s business pro initiatives, led the major U.S. indices to hit new records.
Market Dynamics Are Different for Virtual Currencies This Year
Though Bitcoin and digital currencies have beaten stock market returns last year, the market dynamics seems quite tough this year. Experts are predicting the crash, while regulators are making strict rules to reduce illegal activities associated with the currencies. Global financial institutions are calling them a risk to global financial stability.
However, traders aren’t ignoring the speculative nature of cryptocurrencies; allowing bulls to strengthen their stance of getting support from regulatory actions. They believe regulating cryptocurrencies could turn out to be a positive catalyst for long-term sustainability.
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