Bitcoin Price to Hit $2000 in 2017 Due to ‘Solid Fundamentals’ – Analyst
Bitcoin price is always a hot topic, and for good reason. The recent roller-coaster ride has been exciting, and Bitcoin investors have enjoyed good times, recently. Now, an investment analyst at Lombardi Letter says the good times will roll throughout 2017.
Analyst: Bitcoin to Double in Value, Again
Benjamin Smith is and editor at Lombardi Letter, a newsletter for investors with a subscriber network of over 400,000, and he sees plenty of reasons for Bitcoin to soar again in 2017. In fact, he believes Bitcoin will double in value again, after doing the same last year.
“I expect that $2,000.00 can be achieved this year (more than double the current BTC price) barring any imposition of draconian measures placed on exchanges or trading,” says Smith.
There’s simply too many positive catalysts working in Bitcoin’s favor at the moment.
The reasons for optimism are based upon “sound fundamentals,” which are several. First, he mentions the economic issues that continue to plague China, with the Yuan losing almost 14% of its value against the U.S. Dollar over the last four years. There are no indications that this trend is nearing an end, and with China still among the largest Bitcoin buying markets, this is good news for Bitcoin demand in 2017.
“The main factors underpinning this continued capital flight and currency devaluation are only set to increase,” he notes. “In fact, by all indications, weaker yuan prices could go on for some time.”
China’s Monopoly is Over
There is one issue with his analysis. He basis a good chunk of it on the idea that China controls “over 85% of the Bitcoin traffic,” which is not the case anymore. With the crackdown on no-fee trading by Chinese regulators, the market share has been cut in half to about 40%, according to Coinhills, but is still the market leader.
The Japanese Yen is now at about one-third the market, and the U.S. Dollar is now up to 25% of market share.
Smith notes that Bitcoin market volatility is down and that “Despite the tight overall supply of coins, 16 million, increasingly velocity of transactions is leading to more liquidity, providing stabilizing effects to price.”
The potential Bitcoin ETF ruling on March 11th could have a huge positive effect on Bitcoin price, and the number of companies building a business plan around Bitcoin’s blockchain technology will not hurt its legitimacy case with the mainstream.
The eventual addition of SegWit, the implementation of which would increase processing speed and volume, also factors in Bitcoin’s favor, according to Smith. However, there’s currently not enough support at the moment with the way things are going, so don’t be surprised if that is not added in 2017.
Other Factors Working in Bitcoin’s Favor
To piggyback off his sentiment, I also agree that this will be another big year for Bitcoin, due to many factors. The demonetization in India and rapid growth in Bitcoin trading will certainly help in 2017. Nigeria, Venezuela, and Japan are also seeing huge gains in demand in recent months. The impending stock market crash in New York (it is not a matter of if, but when) will also send investors into the Bitcoin safe haven. This should take place later in 2017.
In closing, a Bitcoin price of $2000 in 2017 is not far-fetched at all. I’d be more conservative, and say $1,500 is a safe bet. Who wouldn’t take 50% on their money in one year? If the ETF and the stock market make news, $2000 could be a bargain for this “digital gold.”
Do you agree with the $2,000 price prediction? Share your thoughts below!
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