There are different motivations surrounding the crypto market. Despite the highly volatile nature of cryptocurrencies, it is true that it is undeniable how blockchain technology can be used by different industries. On the other hand, there are also those who are simply looking to gain some profits from the crypto market.
2017 was definitely a great year for Bitcoin. From less than $1000, who would’ve thought that it could skyrocket to almost $20,000? However, after series of regulatory changes during the early part of 2018, we now have Bitcoin struggling to even make it to $10,000.
Now, there are different takes how the crypto market is going to move this year. Now, it is important for an investor to hear both sides.
Bitcoin to Go Back to $20,000 Again?
One, you have Reddit co-founder Alexis Ohanian who thinks that Bitcoin is going to regain its all-time high of $20,000. However, he notes that Ethereum will be the big winner considering how flexible the cryptocurrency is. According to Ohanian, Ethereum will reach 21 times its current value and could hit $15,000 by the end of 2018.
Nigel Green who is the co-founder and CEO of deVere Group, in fact, predicts that the price of Ethereum will reach $2500 before the end of 2018 and would further skyrocket by 2019 and 2020.
Ethereum is known for its smart contracts. This means that developers can have their own tokens that can be used for different purposes.
Mass Market Wipe Out
But of course, not everyone has a positive outlook when it comes to cryptocurrencies. If you will ask investment bank GP Bullhound, they are predicting a “mass market wipeout” happening over the next 12 months. This means a 90% correction that will virtually bring the value of cryptos to the ground.
Sebastian Markowsky wrote in his report, “once this crypto-winter passes, the growth dynamics for the precious few survivors will be unprecedented”. However, in his report “Token Frenzy: The Fuel of the Blockchain”, he also predicts that institutional investors, as well as retail investors, will dip their feet into the crypto market.
And in reality, this is already happening. Rockefeller family is already confident regarding the future of cryptocurrencies.
ICOs Will Continue to Flourish
ICOs are expected to grow as well. In 2017, ICOs were able to raise $4 billion. However, the bar for ICOs will rise in the coming years. Considering the number of ICO scams, Markowsky wrote that “raising money on the back of a whitepaper will not be possible”. He added that “I think people will need to see more product. The bar will be rising very fast”.
But of course, this is just one bank that has a bearish prediction regarding the crypto market. Twitter billionaire, Tim Draper, for instance, has a different outlook when it comes to Bitcoin. He even mentioned that the target price for Bitcoin by 2022 is at $250,000. And given the past success of Tim Draper in predicting price movement, it is a good idea that people take him seriously regarding his Bitcoin price forecast.