Correction or bubble? Where BTC price is heading

After shedding billions of dollars for several months, the price of Bitcoin seems to be in recovery. Although the Bitcoin ‘boom’ that took place near the end of 2017 has veritably ended, the cryptocurrency is still as popular and controversial as ever.

“There’s been a lot of buzz lately from well-known billionaires regarding the quality of this new asset class. Some have called it toxic, or even poison,” said Mati Greenspan, Senior Market Analyst at eToro. Warren Buffet commented earlier this week that Bitcoin was “rat poison.”

“Yes, the short-term price movements can be highly speculative,” Greenspan continued, acknowledging the risks associated with an asset that has historically proven itself to be so volatile. “However, in the long run, Bitcoin has already proven its value as a global and independent form of money.”

One of the bolder predictions came from billionaire investor Tim Draper, who made his vast sums of money through early investments in giant internet companies such as Twitter and Skype. Draper’s prior predictions in 2014 proved correct, as Bitcoin’s price soared from $300 to $10,000.

“I’m thinking $250,000 a Bitcoin by 2022,” Draper told a crowd gathered outside Draper University in California.

This price momentum is also thought to be realistic by other analysts, who believe the significant price increases in April could create ripples in the market leading to optimism in investors.

Additionally, Ronnie Moas, founder of Standpoint Research and renowned cryptocurrency ‘guru,’ predicted earlier this year that Bitcoin is on its way to the moon.

“Bitcoin is already up 500 percent since I recommended it at the beginning of July, and I’m looking for another 500 percent move from here,” he said in March 2018. “The end-game on bitcoin is that it will hit $300,000 to $400,000 in my opinion, and it will be the most valuable currency in the world.”

On the other hand, Michael Hartnett, a leading investment strategist at Bank of America, has made an analysis that indicates the Bitcoin bubble may already be bursting, with the recent fall of 65 percent indicating the volatile nature of the currency and what can happen in the future.

Indeed, “Bitcoin will never crash,” said one Reddit user, “because then everyone would just buy it when it’s way cheaper.”

Source: Bloomberg Pro Terminal

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