One of the things that make cryptocurrencies risky is its volatility. Though Bitcoin was able to recover above $6,000 in the past week, it is undeniable that it is still quite far from its all-time high last December. Bitcoin almost reached $20,000 at one point.
Today, different prominent figures in crypto have different predictions when it comes to Bitcoin. In fact, Tom Lee pulled back his first prediction that Bitcoin is going to reach $25,000. Instead, he believes that Bitcoin is headed to $22,000 range this year.
For Julian Hosp who is the president and co-founder of crypto wallet and card start-up TenX, he said that “Back then, December, price was at $20,000 all-time high. I predicted for 2018 we’re going to see $5,000 and $60,000. So $5,000, we pretty much hit it, so let’s see if we can do the $60,000. I’m quite confident”.
Bitcoin was trading at around $5,700 in June. Though it was able to recover in the past weeks, it is true that it is still a long way to go from recovering even half of the all-time high’s value. According to Hosp, there is a need for a “massive positive event” before things go up once again. However, Hosp remains “very, very positive for Bitcoin”.
Will Take Some Time?
According to Hosp, if the event needed to make a bull-run doesn’t happen soon, it will “definitely take a bit longer” for Bitcoin to be able to hit the predicted price of $60,000. Hosp also mentioned that by August, in order for Bitcoin to skyrocket into $60,000, the cryptocurrency has to be around $10,000 in August. He said that “if we see over $10,000 by the end of August, we can see the $20,000, then the press, the media is going to come in, and we can still see the $60,000 this year”.
One of the reasons why the crypto market was bearish in 2018 was mainly due to the regulatory changes that happened in the past few months. However, is regulatory change really good or bad? There are those who believe that regulatory changes will eventually make cryptocurrencies fall. However, the likes of Tom Lee who believes that there is a need for regulatory changes in order for institutional investors to participate. And at this point, there will be so much money involved in the crypto market.
Relief Despite Regulatory Changes
But the good news is that regulatory changes have brought clarity on the part of the industry. Despite the regulatory changes that happened in the crypto market over the last months, the US Securities and Exchange Commission clarified that both Bitcoin and Ethereum are not securities.
Will Bitcoin be able to reach the price that has been predicted by Hosp? Though nobody can actually tell the future of Bitcoin, reading by the development in regulations and infrastructure, it seems that cryptocurrencies are going to be accepted rather than rejected by major economies. European Parliament even considered it a mistake for regulators to ban crypto-related activities. But instead, European Parliament simply suggested that cryptos should be regulated.