Bitcoin (CRYTPO: BTC) has broken below the psychologically important support level of US$30,000.
In an article on Monday I explained that, despite the notorious unpredictability of crypto prices, some analysts had forecast Bitcoin would find support at US$30,000. That’s partly because people like nice round numbers. But mostly it’s because, “in options, $30,000 is the most-sold downside strike price for July”.
Round numbers and options signals notwithstanding, at time of writing one Bitcoin is worth US$29,875 (AU$40,925). The token traded as low as US$29,307 earlier today.
The world’s biggest crypto by market cap has now lost 54% of its value since hitting an all-time high of US$64,829 in mid-April this year.
The question investors are asking now is, what’s next?
What’s next for Bitcoin?
Will Bitcoin go to zero?
That was Magellan’s co-founder Hamish Douglass’s position earlier this week. Douglass said, “Cryptocurrencies, I have to say, are one of the greatest irrationalities I’ve seen in a very, very long period of time because of the cult-like following it has behind it and the scale that is behind it.”
Douglass may be right.
On other hand, Morpher’s CEO Martin Fröhler, may be onto something too.
In a survey of 42 crypto experts conducted by Finder, Fröhler forecast Bitcoin will hit US$160,000 by the end of the year:
Adoption by corporations and institutional investors paired with a loose monetary policy and high asset inflation will propel Bitcoin to 6 figures before the end of this year. The next halving cycle will see increased adoption of Bitcoin as a legal tender by developing countries, and until 2030, Bitcoin will have replaced gold as a global reserve asset.
Following the token’s recent losses, Simon Peters, market analyst and crypto expert at online trading platform eToro, cited the Finder survey saying, “Long-term confidence remains high… [M]ore than half [of the surveyed experts] believe Bitcoin is capable of becoming the global reserve currency by 2050.”
The average end of year price forecast for Bitcoin by the panellists is US$66,284, more than double its current price. 61% of the participating fintech pros believe it is currently undervalued.
So who’s right?
I’ll let you know come 31 December!