- Bitcoin at Record High; Breaches $6,000 Level
The world’s most famous digital currency, Bitcoin, reached another milestone on Saturday following the rumour of cash shortage in Zimbabwe and an increase in margin trading.
The cryptocurrency rose above $6,000 for the first time on Friday before peaking at $6,147 a coin on Saturday. So far, the cryptocurrency has gained more than 600 percent in 2017.
The gain came after the coin suffered its biggest one-day decline in a month on Wednesday as investors fear policymakers would target the digital currency following president Putin and JPMorgan Chase CEO Jamie Dimon’s comments on the high flying virtual currency.
Speculation continued to fuel Bitcoin rush even as regulators prepare to tighten trade policy of cryptocurrencies.
Experts like Brian Kelly, a digital assets manager attributed the surged in price to expectations that Bitcoin will rise above $6,000 level, especially after the report of the coin already trading at $7,200 in Zimbabwe became public.
“In the last 24 hours and really the last few hours there has been a massive inflow of capital into bitcoin, significantly outweighing the amount of new money flowing into other cryptocurrencies,” said Alex Sunnarborg, founding partner of cryptocurrency fund Tetras Capital.
The dominant cryptocurrency was trading at $967 a coin as at January 2017.
Bitcoin Price to Hit $397,000 by 2030, Says Report
Bitcoin Price Predicts to Hit $397,000 Per Coin by 2030
A recent report by the Crypto Research Group has shown how Bitcoin, the world’s most dominant crypto coin can attain $397,000 per coin price level in the next 10 years.
In the June 2020 edition of the report, researchers said Bitcoin and other altcoins like Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and Stellar (XLM) — would get a huge boost before 2025. This, they said will continue for at least five years given that Bitcoin is still at a very early stage of adoption.
“We believe that Bitcoin is still at the very start of its adoption curve,” the report states. “The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 trillion]. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”
This means Bitcoin price will increase by more than 4,000 percent from the current level, while ETH, LTC, and BCH are also expected to do roughly 1,600 percent, 5,000 percent, and 5,400 percent growth in the next ten years, respectively.
However, XLM is expected to see the largest increase of more than 11,000 percent increase from $0.07 to $7.81 per coin.
The Liechtenstein-based research group said “If cryptocurrencies gain adoption for long-term hoarding purposes or for short-term spending on speculation or coffees, the price of crypto assets will go up,” the Crypto Research Report stated.
“High velocity on-chain and low velocity off-chain suggests that crypto assets are becoming increasingly used for speculation and not for store of value.”
Bitcoin Continues to Drop, Hits $8,977 Per Coin
Price of Bitcoin Continues to Drop on Thursday
Bitcoin continues to drop on Thursday as the world’s most dominant cryptocurrency set a new low for the week after hitting $8,977 low following surged in supplies from miners.
A report that supplies of the coin rose in June due to the increase in miners’ conversion rate weighed on the digital coin bullish breakout expected above $10,000 resistance level.
Price of the coin declined from $9,772 attained on Tuesday to $9,271 on Wednesday before plunging further to $9,163 per coin on Thursday morning at 1:56 p.m Nigerian time.
This was despite Tuesday’s optimism that Paypal Inc was about to jump into the crypto exchange business.
The decline started after a report by CryptoQuant, a on-chain monitoring resource, showed HaoBTC and Poolin miners moved over 7,000 Bitcoins as anticipated bullish run to have stalled due to lack of new capital.
The reports created panic and broad-based selloff among retail traders, pushing prices below $9000 for the first time this week.
Bitcoin Drops on Wednesday as Miners Outflow Surges
Price of a Unit Bitcoin Drops on Wednesday as Supply Surges
Bitcoin, the world’s cryptocurrency frontrunner, declined from the $9,772 it traded per coin on Tuesday morning to $9,202 on Wednesday following reports that Bitcoin supply is on the rise.
The dominant coin retraced slightly to $9,368 per coin at around 2:08 p.m Nigerian time as shown below.
This may not be unconnected with the Bitcoin Halving highlighted by Investors King in May.
Investors King posited that due to the huge cost of running mining operations and the reduction in block reward, miners are likely to withdraw more often henceforth to meet the difference in operating cost created by the third halving.
Experts now expect sellers to pressure price below the current level as the coin fundamental gradually changed from positive sentiment to break $10,519 resistant level to bearish.
“There has been a big spike in miner outflows overnight, I’m expecting a whole lot of selling, starting real soon,” stated Cole Garner, a popular cryptocurrency analyst.
As predicted last week, a break below $8,781 support level would turn outlook bearish and open up $8,231 support. However, Investors King needs a break of $10,519 resistance level to confirm the bullish continuation.
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