Bitcoin Bull predicts 2019 to be the year of return for bitcoin. After touching its peak of $20,000 in late 2017, the cryptocurrency has sunk a lot. It went down to as low as $4,000. As depicted through the CME Bitcoin futures curve, it stands at a rise of 6% YTD but is still way below the peak achieved.
Bitcoin Price Prediction 2019
Tom Lee popularly known as the Bitcoin Bull had valued the currency between $13,800 and $14,800 last December. He is the Fundstrat Global Advisors strategist. He believes that the favorable macroeconomic trends tend to suggest that this year will be a lot better for the cryptocurrency.
Speaking to CNBC’s Future Now, Lee stated that 2019 would be the year about repair. The risk-on rally across global markets is the basis due to which expectations are high this year. Secondly, with the dollar recovering and not surging at speed it was last year, the 2018 headwind seems to have flown away.
Strong Fundamental & Technical Indicators
On the other hand, the technical indicators also seem to have stabilized as the digital currency is managing to hold over the 200-week moving average. However, it is the fundamentals that are largely impressive. As after the launch of digital currencies by Mizuho Bank and J.P. Morgan, Facebook and other social media companies are on the verge of launching their own.
Also, the huge popularity of Bitcoin and its acceptability across Venezuela is a factor that adds power to these claims. The increased awareness across the globe regarding cryptocurrencies is going to play a crucial factor in making it become an official asset class.
Some Major Developments
Fidelity has recently launched its digital custody while Bakkt is on the verge of launching an exchange. Also, there are some other high-profile endowments and pension funds that have pooled in new money. Although as an asset class these are early days, the macro developments certainly cannot be neglected.
In the near term, the estimates suggest that Bitcoin buyers should keep an eye on the 20-day moving average. In case it maintains to trade around $4,000, the 200-day average should be crossed by August. This development will help the cryptocurrency gain some lost grounds after the late collapse in 2018.
How far will the rally go? Will Bitcoin ever reach the $20,000 mark again?
Forbes Contributor Panos Mourdoukoutas answers the question: It all depends on whether regulators will approve financial instruments that allow for broad investor participation in the cryptocurrency markets, like Electronically Trading Funds (ETFs), according to Bensonoff. “For Bitcoin to hit $20,000 in 2019, we would need a major catalyst, and I believe the only one with this much force would be ETF approval,” says Bensonoff. “Without it, we are looking at a $10,000 best case scenario.”
If STOs gain traction, it could be many multiples larger than the ICO wave
Another Forbes Contributor Jim Preissler predicts a bull run because of STO’s. What is the timing of regulations that will allow advisory, issuance and legal trading of these blockchain-based securities? Another is what will be the key funding mechanisms used? Will existing cryptocurrencies such as Bitcoin, Ethereum, XRP be used, will stablecoins be the key medium, or will new tokens emerge? How will existing ecosystem providers such as exchanges, advisors, and other platforms or technology providers participate? Clearly, when and if STOs gain traction, it could be many multiples larger than the ICO wave that preceded it. But, what could this mean for existing individual cryptocurrencies and blockchain companies remains to be seen?
Economic Recession Can Lead A Bull Run In Crypto
As CCN reports, there might be an interest in crypto because of economic recession. Nearly 50 percent of all US CFOs are projecting a national recession by the end of the year. Seeing as crypto has no correlati0on with the stock market, SFOX believes that a recession could actually have a positive impact on demand for cryptocurrencies. This would drive volatility, particularly in BTC.