A cryptocurrency expert asserts that the market bottom for Bitcoin is approximately $3,000, while another expert anticipates it could rise to $10,000 by the year’s end.
The world’s leading cryptocurrency reached highs of almost $20,000 last December; however, its value has significantly declined throughout 2018. Due to the volatile conditions affecting digital currencies, driven by uncertainties over regulation, barriers to entry, and a surge in Initial Coin Offering scams, Bitcoin has fallen to $6,391 at the time of writing. Nevertheless, it remains capable of fluctuating by hundreds of dollars within hours of trading.
Kevin Murcko, CEO of a crypto exchange, expressed confidence that Bitcoin’s value would not drop below $3,000. He explained that Bitcoin mining involves a cost, and large-scale miners would not sell below that threshold. According to Murcko, ‘Bitcoin mining is currently profitable down to a price of about $3,000 per Bitcoin, so that price represents an approximate market bottom.’
To bolster Bitcoin’s value, Murcko emphasised the need for more real-world use cases for the underlying blockchain technology. Meanwhile, Mike Rymanov, CEO of Digital Securities Exchange, believes increased regulation could facilitate this growth. He stated, ‘Over the coming months, I expect we’ll see the market continue to attract more professional players, which will subsequently lead to much more civilised market conditions, and in my opinion, there still remains a real possibility of hitting the £10,000 mark by the end of the year.’
Rymanov further noted that additional financial institutions are likely to develop robust custody solutions for cryptocurrencies. He argued that once these solutions are in place, investors currently hesitant due to security concerns would be able to invest securely. ‘In the medium-to-long term, it’s likely this will add to the consistently upward trend as we head towards £20,000; however, when and if we reach that point is difficult to predict,’ Rymanov concluded.
The perspectives of these industry experts underscore the complexities and potential of Bitcoin. While its market value remains volatile, the factors influencing its floor price and the optimistic outlook for its future growth suggest a dynamic and evolving landscape for the cryptocurrency.