Mixed opinions on Bitcoin price keeps the markets in the doldrums. Some analysts see the considerable crash, while others believe it could hit $50,000 by the end of this year. The unpredictable nature of cryptocurrencies is evident from the divergence of opinion.
Bitcoin price has peaked around $19,000 before falling back to $6,000 on Tuesday. Bitcoin pared some losses in Wednesday trade on enthusiastic comments from U.S. regulators. It is trading in the range of $8,000 at the time of writing.
How Will Bitcoin Price Reach $50,000?
Several analysts are bullish on the long-term fundamentals of cryptocurrencies, and they believe regulator actions could be supportive of bitcoin price.
Thomas Glucksmann expects bitcoin price to rebound to $50,000 by the end of this year. He believes the entrance of institutional capital, increasing need for regulatory actions and significant technology developments could turn out to be the critical drivers for the potential rally.
Jamie Burke, the CEO of Outlier Ventures said, “We believe after February the market will likely go on a Bull Run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”
Both analysts have based their opinion on speculations and guesswork instead of supporting their argument with facts and figures.
What Do Others say?
However, the comments from the chairman of the Commodity Futures Trading Commission (CFTC) look more compelling for bullish investors. He believes Bitcoin and other digital currencies have intrinsic value; the cost of mining should be considered as intrinsic value.
The prices are poised to crash even if Mr. Giancarlo idea is deemed to be true. Why? Because the cost of mining these coins is substantially lower from the current prices.
He further states, “As many other countries are doing, the cryptocurrency market should be allowed to grow while regulating illegal activities around it.”
Goldman Sachs, who previously criticized cryptocurrencies, came up with a different view today. He says the majority of digital currencies are likely to drop further if not at all.
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