After having increased by more than 75% so far this year, the Bitcoin 2016 prices could be even higher, on the basis of a panel of experts.
This market observers pointed out a series of factors to explain their projections, including macroeconomic uncertainty, market dynamics and a currency warfare inflamed by countries trying to set their exchange rates.
Excellent year for bitcoin
From 2016 to around $ 430, the world’s largest and most famous digital currency has so far a great year, crossing $ 500 in May and then surpassing both the $ 600 and $ 700 in June, USD Bitcoin Index Of BPI prices.
On June 18, Bitcoin prices reached $ 781.31, the highest price so far in 2016, before falling from this peak shows the additional BPI figures. At the end of November the digital exchange currency just north of $ 740, a return of 72.5% year-to-date represented for the first 11 months.
Bitcoin prices pushed upward during the first weeks of December, reaching an annual peak of $ 788.49 on the 13th of this month.
The price of digital currency hovered between $ 700 and $ 800 since mid-November, and it will probably end the year in the upper half of this range.
Betting the bull market
Petar Zivkovski, Leveraged Operations Manager Bitcoin Whale Club trading platform, highlighted the bull market dynamics to explain his prediction that Bitcoin prices were within the range of “$ 750 $ 780” to be at the end of 2016 .
We came to see a good dose of new funds to support the price, “he noted, pointing out that the market has experienced a” lack of / negative bear events “that” lead to a massive aggressive sale. ”
Except for any unexpected bearish catalyst “Bitcoin prices will end the year in the expected range, Joe Lee, founder of Magnr, gave similar contribution to the development of his prediction that digital currency would end the year close to $ 800.
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The demand for Bitcoin is fixed during H2 2016 with macroeconomic uncertainty conduct CEO interest BTCC Bobby Lee also provided an optimistic assessment, we like what we have seen a fundamental and technical perspective. ”
He also talked with the lack of volatility benefited from the crypto-currency as the end.
“Given Bitcoin’s price stability over the past few months, I think it will probably end the year under $ 800.” However, he added that a “small chance of an end-of-year price recovery.”
One factor that could increase the chances of such a year-end rally is speculative activity.
Traders are generally upbeat so far this year, and Whale club data show that the market was 73% long in the first 11 months of 2016. “Trust”, which measures much larger than the average size of A position was over a certain period recorded 77% over that period.
Ryan Rabaglia, lead trader for Octagon Strategies Limited, insisted on this important market factor in achieving its expected 2016 final of the year.
“If we have been optimistic for some time, we will not stop now, the last two months is pushing a fair amount and pulling both bulls and bears, and our retracement is doing works very well for us in 2016 we see leaving One year between 790 USD / CTB and 810 USD / CTB “.
“War of currencies”
While Rabaglia highlighted the dynamics of the market, Gao Kong, overseas marketing director for bitcoin trader Rich Fund, efforts pointed out nations to manipulate their currency, currency war is now full.
While China has generated significant visibility to take measures to devalue the yuan against other countries, it is certainly not the only country to make an effort to strengthen or weaken the currency of origin.
Because of this situation, we expect (65% confidence), the Bitcoin price will rise to about $ 900. ‘
Providing an even more optimistic forecast, BitMEX co-founder and CEO Arthur Hayes believes Bitcoin could enjoy even more profits. He suggested that if digital currency could break $ 800, the “next big place of resistance” will be $ 1,000.