Christmas gift: Bitcoin could reach $10000 by end of this year

7 years ago - Published in Finance, Fintech Land, Technical Analysis

However, it seems that the party is yet not over and analysts are still bullish on the uptrend of Bitcoin. Many believe that the prices of Bitcoin could jump by nearly 70% from here and could possibly touch $10000 by this Christmas.

Technical analysts and investors have predicted based on the charts, Bitcoin prices have convincingly crossed the price benchmarks of 5k, 6k and 7k dollars. The price-volume charts suggest that there is a bullish sign for the investors which can determine the further direction of momentum and analysts say that there is every possibility it could touch $10000 by the year-end.

Moreover, another reason that can be backed by the fundamental analyst point-of-view is the fact that many big players from the “Wall Street” like Goldman Sachs and the CME Group have decided to actively participate in Bitcoin trading.

CME Group’s chairman and one the most prominent figures from Wall Street – Leo Melamed has shown confidence in Bitcoin saying it to be treated as a new asset class in near future. By bringing cash-settled futures contracts CME Group aims to reduce the volatility in Bitcoin thereby making them more stable and predictable for investors.

Amidst a major China crackdown on the operations of local exchanges in the country, initially, there was a significant reduction in the market-liquidity as China was a major contributor in terms of trading volumes.

However, it is been seen that other Asian countries and major economies like South Korea are now contributing to the market-liquidity and investors from the country have participated in the latest bull-run in Bitcoin prices. All these factors show that there is an overall positive sentiment growing around Bitcoin and a sense of confidence is developed in the market about its future.

Another good thing coming along the Bitcoin way is that the much anticipated SegWit2x hard fork has been canceled as the team behind the proposal couldn’t reach a proper consensus.

But then something happened to reverse Bitcoin’s declining fortunes. In October rumours that Amazon would finally relent and accept Bitcoin, perhaps making an announcement in their October 26 Q3 results meeting, helped drive up the value of a Bitcoin right back up, to a then record $5,800. The speculation was fueled by a global petition on Change.org, urging ‘Amazon.com should accept Bitcoin and Litecoin cryptocurrency as payment methods ASAP’.

Investors such as James Altucher, the American hedge fund manager and venture capitalist, stated: “I’m certain that Amazon will accept Bitcoin. They have no choice. And this will be the tipping point that will create massive generational wealth unlike we’ve ever seen before.”

It will be interesting to observe the future momentum and how markets are reacting in the next 50 days before the ending of 2017.

Respectable institutional investors are becoming attracted to a currency that is outside any national regulation or interference: and the value of the existing Bitcoins will rise as its respectability rises. That’s why cryptocurrencies are ditching their long hair and weed, and going mainstream.