It seems that everybody will remember 2018 first market crash in mid-January when bitcoin’s price dropped to $9,402 per unit from relatively stable $14,000 just in two days. Some crypto skeptics have probably started talking about the ‘bubble’ going off.
However, the BTC’s earliest bull and the Wall Street prominent strategist Tom Lee believes that bitcoin will go along even better after the correction, predicting that by the end the king of cryptos will soar to the margin of $25,000 by late 2018 and $125,000 by 2022. Meanwhile, BitPay’s Sony Singh says market’s corrections are often misunderstood.
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After bitcoin lost 50% of its mid-December 2017 $20,000 value, Fundstrat’s Lee remains calm and very optimistic concerning the coin’s destiny. On January 18, as the entire crypto market stepped on the path of restoration, the analyst is sure bitcoin will outperform itself already this year.
"We expect bitcoin's major low to be $9,000, and we would be aggressive buyers around that level. We view this $9,000 as the biggest buying opportunity in 2018," added Lee.
The strategist also expects that bitcoin will keep growing thanks to the enlarged zest from institutional investors and the increased number and usage of crypto clients’ accounts. To assess bitcoin’s potential, Lee always pays special attention to the increase of funds supply, a correlation between gold (and its ilks), that funds supply and BTC’s fraction of gold or its ilks.
According to Lee’s words, ether will get to the rate of $1,900 by late 2018 that will be 90% growth from the current $1,000. In the meantime, ethereum classic will cost $60 as it floats by 90% too, whereas NEO, the Chinese-created cyber coin, will double to $225 before 2019 comes.
Singh’s ‘Downward Side’
After short-term signs of recovery, on January 19 evening the market seems to have started going backward again. Most of the cryptos, presented in the top-100 Coinmarketcap.com list, again turned red.
Sony Singh, the chief commercial officer at the BitPay, believes that no matter how high or how low bitcoin or its brethren get, the situation is always misinterpreted.
“You know every time there’s good news or bad news, the market tends to overreact. And now we are seeing an overreaction of the downward side”, said Singh.
In a conversation with Bloomberg journalists on January 16 (termed ‘Black Tuesday’ by crypto fans), he said that such out of a blue crypto drops are ‘exciting’.
There have been a lot of speculation over South Korea and China curbing on cryptos, but Singh believes there’s nothing terrific, as both countries are trying to make the whole stuff lawful. That is why neither of the countries, according to his words, will completely prohibit the use of cryptos.
Trying to calm down the atmosphere in the crypto market, which started getting tense on Tuesday this week, Singh added that such drops might be novel for newcomers, but he and other people who have been in the industry for years, are more accustomed to it.
Currently, the total market cap makes up $562.7 billion, and it seems that the recovery from the correction will take much more time than it was expected.
Table Source: Coinmarketcap.com