[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!
[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!

Bitcoin Price Prediction - Top Cryptocurrencies Enter Meltdown Mode Along with Stock Market

  • Alex Morris
    📰 News

    Investors on both sides of the aisle found broken toys in their Christmas socks as the cryptocurrency market plunged in synch with global stocks

Top Cryptocurrencies Enter Meltdown Mode Along with Stock Market
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On Christmas Day, both stocks and digital currencies have experienced sizeable losses. The Dow and S&P 500 had the worst Christmas Eve ever, while Bitcoin plunged below the $4,000 support level, again.  

No Christmas present for you

The US stock market has recorded one of the worst weeks since the 2008 recession after sinking for a fourth straight session. For instance, the Dow dropped by a whopping 653 points, making this Christmas Eve historically bad for stock markets. The same goes for the S&P 500, which witnessed a 640-point drop after this Monday’s opening bell.

No Christmas present for you

The uncertainty behind the border wall funding is supposedly the main reason behind the crisis with both sides of the political spectrum playing the blame game. President Donald Trump recently took to Twitter to shred the U.S. Federal Reserve.

Crypto follows suit

While it has been in the doldrums for quite a while, the sea of red after a major market uptick could be quite unexpected for those who haven’t gotten used to the volatile nature of the cryptocurrency industry. Bitcoin was the first to break the Santa Rally, plunging to almost $3,720 after the news about Bitmain’s spree hit the mainstream media. At press time, the price of the flagship currency is sitting at 3,813. Still, BTC remained the best performing currency inside the top ten, with other major altcoins recording double-digit losses.

Even XRP nosedived by 13.40 percent despite a slew of major announcements that have been recently pumping the price of the second biggest coin.

👉MUST READ Domino Effect: XRP Listed as Base Pair on Australian Cryptocurrency Exchange

Meanwhile, Bitcoin Cash (BCH) is the number one coin by daily losses with a sharp 21.69 drop. Notably, the Bitcoin SV fork didn’t fare much better, tanking by 16.86 percent.

Crypto follows suit

Is there a correlation?

As U.Today reported earlier, there is only an insignificant short-term correlation between the S&P 500 and Bitcoin. However, the situation could drastically change when more ‘traditional’ investors start dipping their toes in the space.

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Bitcoin Price Prediction - Is It Too Late to Invest in Bitcoin? Five Reasons to Invest in Crypto in 2019

  • Alex Morris
    📚 WikiCoin

    2018 was a brutal year for the cryptocurrency industry, but we’ve come up with major reasons why Bitcoin could still be your wild card this year

Is It Too Late to Invest in Bitcoin? Five Reasons to Invest in Crypto in 2019
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Since the Bitcoin bubble popped, there have been numerous stories about people losing their fortunes by throwing money into crypto when prices were going through the roof. However, despite market bears reigning supreme since January, there were 54 mln new users in 2018 (the number almost doubled compared to 2017). That essentially shows that the interest is still there (‘What is Bitcoin’ was among the most popular Google searches in 2019).

So, is it too late to invest in Bitcoin? Not really. There are actually plenty of reasons why you shouldn’t write off Bitcoin as a good investment opportunity.

Institutional money is coming

Crypto desperately needs a dose of reputational repair – Bitcoin, despite its ten-year long history, is still mainly perceived as the currency of drug dealing and crime thanks to loud headlines about Silk Road, Mt. Gox, etc. However, crypto is currently getting a much more positive response from institutional investors. Their learning curve starts with skepticism, which is absolutely understandable given the tainted history of crypto, but many institutions are fascinated with the technology.  

2018 was already a precursor to large-scale institutional adoption. As U.Today reported earlier, Wall Street permabull Mike Novogratz is certain that major institutions will start embracing the cryptocurrency space by Q1/Q2 2019.

Novogratz’s words have also been channeled by Asian crypto enthusiast Henri Arslanian, who claimed that more major banks would start dipping their toes into crypto in 2019. Banks around the world have already adopted many Blockchain-based solutions, but they retain a hostile attitude towards crypto.  

BlockTower Capital CEO Ari Paul, however, believes that Wall Street has adopted a lazy ‘wait-and-see’ approach. Now, he predicts that adoption won’t happen until Q3 2019, dismissing his previous prediction as ‘too optimistic.’

Fidelity also launched Fidelity Digital Assets in October 2018, finally crossing the threshold into cryptocurrencies. Thus, Fidelity became the first Wall Street incumbent to bridge crypto with the traditional market.  

At the time of writing this article, ICE-backed Bakkt is already on the verge of launching Bitcoin futures (the delay was allegedly caused by the government shutdown). Bakkt’s long-anticipated Bitcoin futures offer trading and hedging opportunities for Wall Street sharks.

Nasdaq, the world’s second largest stock exchange by daily trading volume, is expected to launch Bitcoin futures in Q1 2019. Notably, the New York Stock Exchange (NYSE) also decided to step its game in the Bitcoin futures niche by rolling out its own product. However, before these contracts can be offered to retail investors, they have to be given the green light by the US financial watchdog.

Adapting to the digital world

In 2019, the face of money will continue changing, and it’s not a huge reach to suggest that cash could become obsolete in the nearest future. PayPal, Visa, and other global payment services actually represent digital information. Cryptocurrencies are simply the next logical step given that they represent the first form of digital money.

The idea that cryptocurrencies will eventually replace fiat sounds a tad futuristic. However, one has to recall the quick rise of smartphones (there are around 2.5 bln smartphones in the world), which can serve as a one-fits-all storage solution for cryptocurrencies. The Samsung Galaxy S10 leak shows that the soon-to-be-released smartphone already has a built-in Blockchain KeyStore app.

Bitcoin is still number one despite criticism

Why invest in Bitcoin? Yes, it is natural that Bitcoin, like any other disruptive technology, is currently facing harsh criticism. For instance, the president of Western Union stated that the telephone had many shortcomings in 1876, and it couldn’t be considered to be a viable means of communication.

Bitcoin obituaries keep rising, but the coin, as you can see, is not going anywhere, and its fundamentals are actually becoming stronger. Generation Z could turn Bitcoin into the currency of the future. Guess who won’t be part of this future? Obviously, those who fail to buy crypto in 2019.

Bitcoin is very scarce

Of course, there are plenty of other options on the table, but Bitcoin is the ultimate OG coin whose hegemony has remained untouched over its ten-year run. Coinbase, the San Francisco-based crypto unicorn, has more users than the total Bitcoin supply, which is limited to 21 mln. The scarcity of Bitcoin will continue increasing while the number of BTC owners will actually decrease. Bitcoin holders are also scarce — less than 5 percent of addresses hold more than $1,000 in crypto. If that’s not enough, you should also take into account the fact that Bitcoin’s total market cap represents roughly 0.006 percent of the total world assets.

No one can say for sure whether it is too late to invest in Bitcoin. However, 2019 could be a nice opportunity to secure your place in the sun when in the imminent era of digitalization arrives.

👉MUST READ What Will Happen When All 21 Million Bitcoins Are Mined?

Bitcoin can act as a store of value

With the trade war between the US and China and the looming global economic crisis, people turn to digital currencies as a source of stability. That explains the skyrocketing popularity of Bitcoin in the Latin American region, which is mostly plagued by economic woes.

A recent JPMorgan article vividly shows that it cannot act as a hedge asset given its price volatility, but one has to take into consideration the fact that Bitcoin is not controlled by any centralized body. On top of that, it doesn’t have to be transported in its physical form like gold. Learning how to invest in Bitcoin today could make it much easier to fight the financial turmoil.     

Bitcoin follows natural market cycles

There is also a theory that the current crypto rout is simply the result of a natural market cycle, which flies in the face of those who push the crypto narrative. aXpire’s CEO Gary Markham claims that there are actually many similarities between Bitcoin and gold futures – the graph below shows practically the same price pattern. Gold futures started trading on New York’s exchange on Dec. 31 in 1974.   

Is It Too Late to Invest in Bitcoin? Five Reasons to Invest in Crypto in 2019
As you can see, the launch of the futures was followed by a brutal price drop (it took almost two years for the gold price to bottom out). This bearish trend was followed by a ten-fold increase compared to its previous ATH. Taking this into consideration, one could predict the Bitcoin price could skyrocket up to $180,000 when it’s time for another bull run. However, one should also take into account the fact that there are numerous discrepancies between the two markets, which complicate the task of making any concrete predictions:

  1. Many market participants were unaware of Bitcoin futures.

  2. Unlike the precious metal market, the cryptocurrency market is much more competitive with more than 2,000 coins and tokens listed on CMC.

  3. Bitcoin as an investment is more susceptible to different kinds of speculations. Its price highly relies on whales, the industry and, of course, the underlying technology. For example, quantum computing attacks could put a damper on the public-key cryptography that underpins Bitcoin.  

Want to look at a similar price? Then look at the so-called ‘Wall Street Cheat Sheet’, which perfectly displays the oscillation of human emotions. ‘Euphoria’ is the highest point when an investor is willing to go all-in without a modicum of rational thinking.    

Beyond Bitcoin: security tokens saving the crypto industry?  

Security tokens (STOs) represent a pivotal opportunity for the mainstream adoption of cryptocurrencies given that they combine the best from both worlds: an emphasis on regulations is combined with more liquidity and more funding opportunities. They have numerous advantages over traditional financial assets while simultaneously appearing to be a much safer option than ‘wild west’ ICOs, 70 percent of which failed to exceed their initial valuation.

👉MUST READ 70 Percent of 2017-2018 ICOs Turn Out to Be Massive Bombs: Report

Polymath and tZero are the startups that are actively working on the implementation of security token offerings, and these are the companies that you should definitely watch in 2019. U.Today earlier published a tutorial on how to create your own STOs with Polymath.     

tZERO is an SEC-regulated Blockchain subsidiary of the e-commerce behemoth Overstock. The security token exchange platform went live on Jan. 29. As of now, tZERO will only operate during Wall Street hours given that they have to work in sync with broker-dealer Dinosaur. However, in the long run, they want to allow their clients to trade around the clock.  

There are those who are shooed away by the word ‘security’, supposing that it would bring greater scrutiny to the space, but, as mentioned above, that could actually be a significant advantage over ICOs. Their enhanced legitimacy could trigger a ripple effect and attract many institutional investors on board.
On top of that, STOs could be a major catalyst for cryptocurrency growth in 2019, a spillover effect.  Tokenized securities have the potential to bridge companies globally, substantially expanding the community of investors.      

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