To reach this price point, Bitcoin would need to climb more than 200% from its current price of roughly $8,100, according to the CoinDesk Bitcoin Price Index (BPI).
However, several analysts maintained the cryptocurrency could experience a rally of this magnitude in 2018.
Seth Wiener, managing partner of venture firm University Capital Group LLC, was in this camp.
“I see BTC closing the year around the $25K mark and hitting that price sometime before Christmas 2018,” he stated.
Wiener pointed to several positive developments affecting the space:
“Some point’s worth considering are Wall Street’s renewed interest in Crypto, the number of new institutional investors and investment firms plus involvement from iconic families led by George Soros and the Rothchild’s are huge positives. Individually they move markets combined you build a new blockchain financial system.”
Sebastião Coelho, CMO of Flashmoni, a blockchain company creating financial solutions for the unbanked and underbanked, said that Bitcoin could easily hit $25,000 this year as the regulations surrounding digital currencies mature. He stated:
We’ve seen government bans and proposed regulation negatively impact the crypto market, but as global regulation is introduced this year, we expect to see more government support for cryptocurrencies like Bitcoin.
In fact, we’ve already seen the first sign of this, with 22 European countries signing an international blockchain partnership agreement this week. This, combined with increased public understanding of blockchain, will ultimately lead to a crypto boom this year.
‘The Sky Could Be The Limit’
James Tabor, CEO of blockchain company MEDIA Protocol, spoke to the great potential that Bitcoin has going forward.
“As long as blockchain projects continue to mature at their current rate, and we see adoption across the enterprise, then the sky could be the limit,” he emphasized.
“Bitcoin is certainly the gateway for many in the crypto world,” said Tabor.
However, he emphasized that “for new highs to be attained, and sustained, we will need to see POCs becoming production ready, and true value being realized.”
The “Dog Days Are Over”
Bitcoin’s dog days are over, says one of the biggest cryptocurrency hedge funds.
Pantera Capital Management, which has more than $800 million in assets, says $6,500 was the low of this bear market and Bitcoin will stay above that price for the majority of the next year, likely surpassing the previous record of almost $20,000, according to a note sent to investors Thursday.
In December of last year, CEO of Pantera Capital Dan Morehead was one of 3 hedge funds, analysts or traders that we covered that accurately called the market correction. Just about everyone else was bullish on the digital currency. So much so that several hedge funds rushed to open doors in 2017, and several opened with Bitcoin at or near All-Time highs.
The Contrarians That Turned Out To Be Correct
BlockWealth Capital Founder Matt Siebenthal received a lot of flack back in December when he mentioned Bitcoin could drop below $7500 before resuming it’s bull run. Bitcoin was trading above $19,000 at the time and euphoria for the digital currency was at an all time high. The former professional trader and macro manager postponed plans to launch a crypto hedge fund in 2017- citing concerns for valuation as many carelessly entered the space.
Siebenthal, a huge believer in the underlying technology behind Bitcoin- the blockchain, believes it has the “potential to revolutionize nearly every industry as we know them.” Siebenthal is said to be planning a soft launch in May-June 2018 with some personal money. Other investors are believed to include high-net-worth individuals and family offices.
Michael Novogratz, the former macro manager who’s turned into one of the biggest champions of bitcoin, also shelved plans to start his cryptocurrency hedge fund and was one of the first to publicly predict that the digital money could plunge to $8,000 or lower. Novogratz still believes they’ll be a disruptive force in finance and is calling for Bitcoin above 25,000 by year’s end.
The Next Bull Run
The general consensus from the experts- at least the ones that called the sharp drop in Bitcoin prices (and took a lot of flack for suggesting the digital currency could drop 50% or better when it was trading near all time highs) are now calling for the next bull run to resume possibly in the 2nd to 3rd quarter this year.
While so many of the hedge funds that rushed to open doors in the second half of 2017 were crushed, those that exercised caution while many carelessly entered the space may very well present investors with an incredible buying opportunity.
Cryptocurrencies could go on a bull run greater than last year and pass the trillion-dollar mark in terms of value, experts told CNBC
Investment tycoon Tim Draper said earlier this week that he now sees Bitcoin as reaching $250,000 by 2022. Draper’s 2014 prediction – when BTC was around $320 – that BTC would pass $10,000 in 2017 turned out to be correct.
Additionally, a Goldman Sachs executive reportedly left to join Michael Novogratz’s crypto merchant bank, and reports circulated that Soros Management Fund would begin crypto trading, and that the Rockefellers join Rothschilds & Soros in cryptocurrency investing.
Morehead added that his “professional opinion is that we’re in the first innings of a multi-decade trade,” as Bitcoin recently fell below its 200-day moving average, a “rare buy signal:”
“There are 200 Trillion dollars tied up in stocks, bonds, gold & cash. I am not excited about putting my money into any of those 4 options right now. If 1% of that 200 Trillion finds it’s way into cryptocurrencies over the next 10 years you’d be looking at a 2 Trillion Valuation. 12X what it is today.”
– Ronnie Moas
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