A survey of fintech specialists shows that by the end of the year, there would be an expected 22 per cent increase in the price of bitcoin compared to the current price. This would be driven by increased appeal for the crypto currency due to launch of new services. It would also be boosted by investors deciding to divert capital as the stock markets worldwide see a drop globally.
So far this year, the price of bitcoin has with a 50 per cent rise in this month alone. On Tuesday, the price of bitcoin was at $7,972.99.
The price of bitcoin will slightly fall from the $8,000 level going into June before moving upwards again toward the end the current year to trade at about $9,659, said a host of executives at cryptocurrency hedge funds Arca, BitBull Capital and academics who participated in the survey conducted for the poll by the US comparison platform Finder.
“Eight out of 10 panellsts think the price of bitcoin increased due to cryptocurrency-related announcements made at Consensus 2019 in New York City,” Finder said in a statement. Consensus is amongst the largest of the crypto industry events where major companies, developers and investors in cryptocurrency and blockchain get together to discuss various industrial issues.
The launch of physically-settled bitcoin futures products would be made soon by the bitcoin futures exchange Bakkt, it has announced. This product would allow payment of traders in bitcoin contracts which would be different from the current cash settled ones offered by the CME.
The escalation in the US-China trade war has already prompted some stock investors to move capital into cryptocurrencies from stocks and equities, opined 50 per cent of the experts polled.
A potential tipping point for the wider adoption of bitcoin as a transaction currency has been initiated by allowing its consumers to pay for daily necessities with cryptocurrencies by leading retailers such as the Amazon-owned Whole Foods, and Nordstrom, said David Wills, managing director at Kenetic Capital, a digital asset proprietary trading firm.
“Last year, the bear market was in part caused by the fallout from many loss-making, unsuccessful initial coin offerings, and the participation by a number of questionable players that attracted regulatory scrutiny in cryptocurrencies,” said Wills.
This year, there has been a further maturing of the concept that cryptocurrency can be considered to be an investible asset class, he said. This has been driven by increased participation by institutional market participants and the creation of different infrastructures to meet the specialized need of these institutions.
Bitcoin’s price swings have been used in recent times to make substantial gains over the last two months by the trading strategies of Kronos, a high frequency cryptocurrency trading firm, said Mark Pimentel, the founder and co-chief executive of the company.
“The cryptocurrency market is swayed by news and attention, so as bitcoin begins to rise in price again, more traders enter the market. It is much more likely for these entrants to buy bitcoin than sell … so this predictably creates price appreciation,” he said.
(Adapted from SCMP.com)