Amid global speculation over the direction of Bitcoin prices, many analysts and industry leaders have weighed in with their viewpoints of the digital currency and the market as a whole.
TenX founder Julian Hosp shared his thoughts about where he believes Bitcoin is headed in the upcoming year. “I think we’re going to see bitcoin hitting the $60,000 mark, but I also think we’re going to see bitcoin hitting the $5,000 mark. The question is though, ‘Which one is it going to hit first?'”
It is fitting that Mr. Hosp provides quite a wide range of potential outcomes, considering the tremendous volatility that is typically associated with the virtual currency. Bitcoin reached its historical high on December 17, hitting a price of $19,661 as it began to approach the $20,000 psychological barrier.
On Friday, Bitcoin endured a substantial drop in value, falling below the $11,000 mark, before rallying back up to current levels of about $15,300 at the time of writing.
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Price Drop is a Positive Sign for Bitcoin
Mr. Hosp was very positive in addressing the recent drop in the price of Bitcoin: “For experts that have been in the market, this was actually a welcome dip. This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40-45 percent discount to all-time highs. I don’t think right now, but I think in the long run, we will always see a little bit of an up move, and then a dip down.”
While some investors tend to panic at times of major price declines, others view it as an opportunity.
The Future of Crypto
The growing demand for Bitcoin, which is limited in supply, could be a factor in pushing the coin to higher unprecedented levels. However, according to Mr. Hosp, additional price drops should be expected as well: “I don’t think it’s going to be a bubble that’s just going to burst and everyone is going to lose their money, but I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out.”
He offered his viewpoint regarding which cryptocurrencies could potentially achieve long-term success, saying that “the money is going to flow into those assets in this cryptocurrency space that really deliver value, have new technology, and are being used by people.”
The high volatility of Bitcoin and other cryptocurrencies have been a major concern for governments and regulators around the world. For example, the FCA has warned the public of risks associated with investing in Bitcoin at the moment, ultimately maintaining its previous stance of not regulating the virtual currency. FCA Chief Executive Andrew Bailey recently compared trading Bitcoin to gambling, and said: “If you want to invest in Bitcoin be prepared to lose your money – that would be my serious warning.”