The bitcoin price prediction for 2017 is that it will pass the $3,000 mark and probably reach $4,000.
Today (1 June 2017) it is $2,395.04 however, just a week ago (24 May 2017) the bitcoin price hit an all-time high of $2.791.69 whilst it was at $2,000 on May 20 2017.
In fact it was reported on CNBC that a Saxobank analyst Kay Van-Petersen, who correctly predicted the $2,000 bitcoin price back in December 2016, predicts that it could reach $100,000 in 10 years time.
Furthermore, at the time of his prediction of the bitcoin price hitting the $2,000 mark in 2017 (which it did on May 20 2017), bitcoin was only trading at around $754 which represented a 165% increase giving his 10 year prediction more credence.
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Kay Van-Petersen, who co-authored the Saxobank’s “Outrageous Prediction” for the bitcoin price, said the virtual currency had the potential to take 10% of the $5 trillion foreign exchange market in ten years’ time.
This means that a $1.75 trillion market cap would value each bitcoin at $100,000 which would be a 3500% increase on today’s bitcoin prices.
So whilst the price of bitcoin is volatile it’s outlook is that it’s long term trajectory appears to be upwards.
The Bitcoin Price Could Hit $4,000 By December 2017
A shorter term prediction is that the price of bitcoin could reach the $4,000 mark by the end of the year.
As published on CNBC’s website, Daniel Masters (analyst & chairman of XBT Provider) expects Bitcoin to reach $4,000 by the end of 2017.
He went on to say that bitcoin’s high volatility is being reduced due to bitcoin’s rapid increase in growth together with more products and exchanges being established.
He also predicts that the increased volume will also stimulate & push up the bitcoin price.
A supporting view on this comes from Garrick Hileman, economic historian at the University of Cambridge & London School of Economics, agreed that recent developments are instrumental in the increased bitcoin demand.
The reasons for this, he told CNBC, are that “Macroeconomic and positive regulatory developments are fueling significant demand in many markets, particularly South Korea and Japan, as well as India, Venezuela, Nigeria, and elsewhere…”
He did add however, that with the imminent or potential split in the blockchain, that if the bitcoin ecosystem divides then the price could plummet.
On the other hand if there is a successful resolution to the bitcoin scaling issue, the bitcoin price could be porpelled to new highs.
He also added that “The frothiness we are observing in the initial coin offering market right now may trigger a regulatory backlash, which could negatively impact bitcoin’s price…”
So when it comes to the bitcoin price we could be in for a bumpy ride and the brave bitcoin investor could stand to make a killing if the price predictions become a reality.
The Bitcoin Price Is Set To Hit the $100,000 Mark In 10 Years
This is how Kay Van-Petersen established his bitcoin price prediction of $100,000 mark in 10 years’ time.
- His main assumption is that cryptocurrencies in general will account for 10% of the average daily volumes (ADV) of fiat currency trade in 10 years.
- Foreign exchange ADV currently stands at just over $5 trillion, according to the Bank for International Settlements.
- So based on his assumption above, 10% of $5 trillion will be $500 billion which is the ADV that cryptocurrencies could account for.
- Another assumption is that Bitcoin will account for 35% of that 10% market share (of the ADV of all cryptocurrencies), which would be $175 billion of the $500 billion figure meaning that $175 billion worth of bitcoin would be traded every day.
- He also says if the Bitcoin market cap is 10 times the average daily volume, it would be $1.75 trillion compared to the current figure of around $37.8 billion, according to data from industry website CoinDesk.
- Knowing that Bitcoin’s supply will be limited to 21 million bitcoins,which is expected to be reached by the year 2140, he calculates that there will be 17 million bitcoins in circulation in 10 years time compared to the current 16.3 million that have already been produced.
- So, in 10 years time, if the forecast of 17 million of bitcoins is divided by the $1.75 trillion market cap estimate, then each bitcoin would be worth just over $100,000.
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