2019 did not begin with a not-so-bad note, and that is why the price has been rising so fast. Bitcoin has increased by close to 14% overnight with other cryptocurrency assets surging too.
Following the hacking of 7000 Bitcoins at Binance, the crypto space is not looking all good. First and foremost, BTC has been able to mature as a body of investment, primarily with the creation of Bitcoin futures. The second thing to note is that the cryptocurrency crash brought a new degree of cleanup, and greatly changed the dynamics in the cryptocurrency industry. A trend has been seen in the kind of Bitcoin ETFs that are usually submitted to the SEC. This delivers a very important insight.
Is the Previous BTC’s Price Forecasts Of $160,000 Still Accurate?
The quick answer to this is that Bitcoin does not appear as if it is likely to hit $160,000 anytime soon. It could happen after a very long time, but definitely not by 2022 or 2020. This was the timeframe that was given in the previous predictions.
The introduction of Bitcoin futures is one of the reasons for this. This gives a chance the large capitalists to place pressure on the price of Bitcoin in a way that has never been witnessed before. The introduction of Bitcoin futures on 17th December 2017 led to the subdued returns to BTC moving forward.
With so many Bitcoin ETF proposals that have been submitted to the Securities Exchange Commission this year, a trend that concern the BTC price forecast is not seen any time soon. What is currently seen is an emphasis on non-physical Bitcoin ETF’s. the ETFs are basically submitted as derivatives. They can either go short or become correlated to the BTC’s futures. It is only the physical Bitcoin ETFs are best for the entire Bitcoin market. The derivatives tend to deliver a market to a state of its own.
However, on the flipside, institutional investing is likely to enter the whole BTC market before 2019 becomes to an end. Consider the Bakkt platform as well as the NASDAQ offering crypto investing to the institutions. That is a positive move.
All in all, it is believed that increasing derivatives in the Bitcoin’s market will place much pressure on the returns. The initial $160,000 Bitcoin price prediction which was set by 2022 cannot be realistic in the current circumstances.
Bitcoin Price Forecasts VS. The Usage Of Bitcoin
In regards to Bitcoin usage and the adoption data, the ownership of this leading crypto coin is still very low. However, the situation has improved from how it was about 18 months ago. The statistics show that Bitcoin ownership went too low in the United States amid an amazing BTC price surge, willingness to use the BTC for transactions is very significant. The stats show that the shares of the United Stated adults planning to invest in the coin is very phenomenon for the younger generation, who definitely see the cryptocurrency as a product of their online asset age. When it comes to the Bitcoin ATMs all across the globe, there has been a stagnation in the past couple of months.