If you’re reading this then I’m sure you know – the price of Bitcoin has collapsed over the last few weeks. From a dizzying high of US$19,783, it plunged to under $6,000 before recovering slightly and currently hovering just over $8,000.
This would be no surprise to followers of our blog – it was clear months ago that a crash was imminent. We weren’t alone in forecasting it and neither are we alone now in enjoying a little self-satisfaction at just how right our prediction appears to have been. Just take this image from yesterday’s Forbes article:
That’s all history now and of no use to those still looking to make money on cryptocurrencies. So, where is Bitcoin heading this year? Nobody knows for sure (unless you believe the conspiracies of market manipulation by a small number of individuals) but here are a few predictions:
- Bitcoin reached its bottom as crypto funds beat hedge funds, says digital currency investor
- Is Bitcoin Heading To Zero?
- Buffett on cryptocurrencies: ‘I can say almost with certainty that they will come to a bad ending’
- Bitcoin headed to $100,000 in 2018, says analyst who predicted last year’s price rise
- Top 4 Bitcoin Price Predictions for 2018
The main thing to keep in mind is that the majority of predictions out there are being made by people who either have a vested interest and make very bullish predictions (usually those who stand to benefit from a rise in value of Bitcoin) and those who know almost nothing about cryptocurrencies and tend to predict a catastrophic collapse. Almost certainly the true trajectory lies somewhere between. It’s possible but unlikely that Bitcoin will exceed $20,000 – at least in the near future while its recent rapid decline is fresh in investors memories. It seems more likely that it will start to plateau at a more reasonable value, perhaps close to $10,000. In the longer term, a more stable value will make its use as a currency more practical and thus increase its intrinsic value with a slower but less volatile rise in value over the next few years.
Whatever you choose to do, remember not to put all of your eggs into one basket. This goes especially for products with high volatility, such as cryptocurrencies at present.