Todd Horwitz, chief strategist at Bubbatrading.com, believes bitcoin, the most popular and biggest cryptocurrency by market cap, could prove to be an alternative currency to fiat money. The year 2017 was undoubtedly the year of Bitcoin and the overall development of the cryptocurrency space.
During the holiday weekend, the leading digital asset declined considerably falling from the $16,000 mark to fluctuating around $13,000 at the time of writing. Although Horwitz believes bitcoin will do well in the future, he predicts the journey to be fairly bumpy with dramatic falls and rises in 2018.
“I would think that the bitcoin price is a bit of a bubble and I think you will see some more dramatic falls. But anytime we see dramatic falls you also see dramatic rises as the buyers try to get back in,” said Horwitz.
“Fear of Missing Out” causes Price Swings
Many crypto strategists envision the road ahead for bitcoin will not be easy even with the exciting past twelve months. Due to bitcoin’s wild ride, investors cannot resist the attraction of buying because of “fear of missing out.” Horwitz said:
“I think when you look at bitcoin it’s obvious it’s new, it’s under a lot of ‘fear of missing out’ trade – there’s a lot of people trying to figure out how to trade it right now.”
Bitcoin comparatively is a small market when compared to the established financial ecosystem. The cryptocurrency’s dominance is about 37 percent and slowly declining due to network congestion, higher transaction fees and the breakout of several altcoins such as ripple.
Even with constant fluctuations in bitcoin price and the criticism the digital asset is undergoing, Horwitz says “I do believe the cryptocurrency space is here to stay and I think it’s going to be a great alternative currency that’s going to be used.”
Other strategists’ take on Bitcoin’s next 12 months
Bitcoin is very unpredictable as it experiences significant price swings suddenly. Nick Colas, Wall Street analyst, predicts bitcoin to fluctuate between $6,500 to $22,000 over the next 12 months, “Bitcoin can rally to $22,000 and still be reasonably priced, or plummet to $6,500 and also be correctly valued.” Colas added, “We expect to see bitcoin trade for both prices in 2018.”
According to tech investor and American businessman, Roger McNamee, believes the cryptocurrency industry will last even if the bubble bursts or the industry crashes. He said, “We saw that with the internet bubble, we’ve seen it over and over through American history.” Recently, American billionaire Tilman Fertitta presumes bitcoin to be similar to the dot-com bubble.
It is evident the cryptocurrency debate is generally based on principles and ideals one follows. Although major Wall Street executives disregard bitcoin due to its volatility, some have seemed to warm up to the most popular cryptocurrency.
Will bitcoin suffer a dramatic fall in 2018? Let us know your thoughts in the comments below.