Bitcoin’s Profile Grows, Forecasts Rise
$BTCUSD, $GS, $BAC
Price forecast for Bitcoin are rising, with some of the biggest banks including Goldman Sachs Group Inc. (NYSE:GS) joining, while speculators to long-time investors are making new bets.
The consensus is that the biggest cryptocurrency will face some resistance around 4,500 – 4,800 and correct, to then continue rallying.
The Big Q: How high?
The Big A: Some analysts see it going to 6,000 by year-end, 1 says to 7,500 in Y 2018.
Bitcoin more than 3X’d in value this year as it crossed 4,000 mark and touched a record 4,477 last week before fading from the high as investors took profits closing at 3,847.49 Monday.
Growing adoption and institutional investor interest, agreement on a mechanism to speed up transactions and regulatory steps that will help the asset broaden its reach are some of the reasons that explain the gains.
A Goldman Sachs technical analyst wrote in a note to clients on 13 August that Bitcoin could erase around 40% of its value after reaching 4,827.
Goldman Sachs analysts also said the space is getting big enough at over $100-B in market capitalization that it warrants watching.
Some analysts have steered clear of making price predictions, while dipping in Bitcoin’s action.
Cryptocurrencies including Bitcoin are still very volatile and thus not particularly safe, but that could change as their value rises and liquidity increases, wrote Bank of America Merrill Lynch (NYSE:BAC) strategists earlier this month. They score well when it comes to diversification, as their correlation to equities, bonds, commodities, currencies or selected measures of risk is near Zero, the strategists said.
More longer term
Bitcoin will climb to 25,000 by Y 2022, as recent regulatory approval for options trading and settlement implies a “significant rise in institutional holdings” of Bitcoin, analysts estimate that user accounts are likely to rise 50% and usage per account to climb 30%.
I a 14 August report 1 analysts wrote that Bitcoin could rise to 50,000 by Y 2027 as he expects cryptocurrency users will grow to as high as 100-M users from 10-M today in the next couple of years.
Cryptocurrency is becoming more widely accepted by the day.