Bitcoin has over the years grabbed headlines of major financial newspapers and gained popularity through its impressive run. Since its inception in 2009, the digital asset has defied all odds and survived the many comments by critics. One thing is very clear in its journey to top: impressive Bitcoin price prediction.
A number of experts’ Bitcoin price predictions failed to see the light of the day. However, market enthusiasts can testify that most of the predictions come to pass. This article will revisit some of the predictions made at the dawn of the year and their current status.
The Quinlan Associates Bitcoin Price Prediction
The Quinlan Associates are known for their famous Bitcoin price prediction in 2018 that took many investors by surprise. They predicted a total collapse of the Bitcoin market when the digital asset was trading above $14,000.
In their report entitled “Fool’s Gold: Unearthing the world of cryptocurrency”, they estimated the actual value of Bitcoin using the cost of production and the store of value approach. They predicted that Bitcoin would crash from $14000 to trade around $1800. Though the year-low was a little above $3000, the price obviously struggled as they predicted.
Going by the report, the Quinlan Associates had no positive Bitcoin price prediction for the 2019 year as they predicted a long term struggle for the Bitcoin market. They stated that Bitcoin is a bubble trading at a false price. The report further stated that the time ahead, which started in January 2018 would be a correction year. According to them, the Bitcoin price would be corrected and trade at its actual value.
The report went ahead to predict that the market can bounce back depending on a number of circumstances such as government regulations and how the world at large accepts the digital asset. However, the Bitcoin price failed to reach his predicted $1800 price zone by the end of 2018, but took a significant run, up the price curve after hovering within the $3000 price zone.
Tom Lee’s Bitcoin Prediction
Another famous expert in the cryptocurrency industry known for his frequent Bitcoin price prediction is Tom Lee, Fundstrat Global Advisor Co-Founder. According to a prediction reported by Bloomberg, Tom Lee stated that the Bitcoin price would break its all-time high record to set a new one to trade at $40,000. He believes that the Bitcoin market pullback is over, and it is time for a bull-run.
Tom Lee stated that the market would be heavily influenced by the addition of new investors on board with the fear of missing out. To him, the recent run of Bitcoin has not had enough effect from the new investors. When the Fear Of Missing Out (FOMO) takes a full effect, Bitcoin would double its all-time high. Tom Lee earlier predicted a massive run for Bitcoin in 2018 but the prediction went down the drain.
John McAfee’s Bitcoin Price Prediction
Image Source: www.hackernoon.com
In December 2017, Bitcoin recorded its all-time high price of near $20,000. Around that time, it took just a few weeks to rise from $2000 to that price height. One of the few analysts who took advantage of the rate of a Bitcoin price increase to predict an unimaginable trading price was John McAfee, the creator of McAfee anti-virus.
He posted on his Twitter page that Bitcoin would hit $1 million by 2020. After his prediction, the Bitcoin market experienced a massive crash, taking the price down to as low as $3500. Since December 2020 is about 16 months from now, his prediction still stands. Most predictions are made with the assumption of the high adoption rate of Bitcoin in the future coupled with favorable government regulations.
Time Draper Prediction
Image Source: www.time.com
Tim Draper, the Serial VC investor recently added his voice to the many predictions yet to see the light of the day. According to him, Bitcoin will hit $250,000 by 2022. However, this price point would be delayed into the first quarter of 2023. He believes that the Bitcoin investors would wait a little longer than planned, thanks to its status as “safe heaven”.
How Bitcoin Halving can Turn Things Around
Statistically, 2020 down to 2021 would be a good time for Bitcoin investors. The main reason is the Bitcoin halving event scheduled to take place in 2020. Historically, Bitcoin sets a new all-time high price anytime this halving event takes place. From the 2012 Bitcoin halving event to the 2016 event leaves a mark of the market bull run.
The 2016 event saw Bitcoin reaching near $20,000 in December 2017. This price surge following the event is not by magic, but by the law of economics. Halving events see Bitcoin mining rewards being reduced by halve.
This makes it expensive to mine the digital asset considering the cost of electricity and other inputs of production. In return, the supply of Bitcoin reduces. Reduction in supply means there will be an increase in demand against the limited supply, hence pushing the price up the price curve.
Source: Hacker Noon
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