The last couple of weeks have been crucial for the future of bitcoin, considering the fact that the digital currency is still enjoying what can be named as its longest stretch over $1,000 since Bitcoin was created. Therefore, experts do not believe that the price of the digital currency has just established a floor at this particular level.
During the last couple of days, and weeks, the prices have been slowly, but surely rising, and have just reached a new all-time high of $1,210, which is massive for the digital currency, and represents solid proof that bitcoin is finally over its unfortunate event back in 2013, when it lost a few hundred dollars-worth of value, after the Mt. Gox hack.
Apart from this value increase which can be attributed to numerous factors, such as the financial collapse in China, the new austerity measures put in to limit capital flow outside the country, but also the increasing interest of banks and financial institutions into the blockchain system. The increase in value can also be attributed to a growing number of bitcoin-related investments, but also to a larger number of average daily transactions.
This isn’t the end of the price growth, however. Economic analysts have mentioned that there is an even higher potential upside waiting just around the corner. Market observers have stated that an even higher increase is possible in case the SEC decided to approve the Winklevoss Bitcoin ETF, which is basically an investment fund. The approval deadline is by the 11th of March 2017, yet the odds of it being approved are actually quite low, given the opinion expressed by the government agency, although not impossible. If the Bitcoin ETF does get approved, then this will allow numerous more investments to be made into the cryptocurrency, thus increasing cash flow, and the amount of attention and popularity that Bitcoin is currently getting. While the odds are situated around 10-15%, we may just have a surprise, if the SEC understands the potential of the ETF, and how it could further shape our financial system later down the road.
While prices have recently been presenting quite a bit of volatility between the sums of $1,100 and $1,200, there is an upwards tendency being noticed on the market.
Speaking of value growth, it is also worth pointing out that the CEO of BTCC, Lee Pegs, has mentioned that the bitcoin price will likely reach a value situated anywhere between $5,000 and $11,000 by the year of 2020, which is just 3 years away, given that the next block halving takes place, and assuming that a $5-10 million daily flow will be put into the digital currency. To further put things into perspective, at this moment in time, the daily flow is situated at around $2 million per day. This particular statement comes right after his bitcoin exchange, BTCC, was forced to suspend both bitcoin and litecoin withdrawals, while they work on implementing new security systems, as required by the People’s Bank of China, as a way of cracking down on illegal activity such as money laundering, revolving around the digital currency.
Based on everything that has been outlined so far, what do you personally think about Bitcoin reaching a new all-time high, and about the value predictions for the future? Let us know your thoughts in the comment section below.