High volatility, innovation, growing popularity and a lot of speculation. These are some of the characteristics that make cryptocurrencies so attractive and have made this market so fast-growing.
Cryptocurrencies attract both investors and traders, as well as analysts who give high forecasts for their prices in the future.
This is increasing interest in cryptocurrencies, but the important question is "How realistic are these forecasts?"
When we talk about cryptocurrencies, one of them stands out from the others. It is bitcoin, which is the first and most popular cryptocurrency with a market capitalization of almost $850 billion at the moment.
We see two important things on the chart - the first is that the current price is $54,706, and the second is the higher volatility.
Sharp movements in both directions are typical for cryptocurrencies, including bitcoin. We can see similar price changes in one of the two directions in the last 5 years - 2017, 2018, 2019, 2020 and 2021.
Two time-proven and world-renowned financial sources predict that the price of bitcoin will reach $100,000.
These are Standard Chartered and Bloomberg, which conduct in-depth market research covering various aspects related to the price of an asset.
What is more interesting is that these forecasts are not for long-term appreciation, but for growth by the end of 2021 and the beginning of 2022. This means that the two institutions expect the price to reach these levels in the next 4-6 months, which is quite a short time.
The forecast and current market price give us an answer to the question "By what percentage should the price rise to reach $100,000?".
The answer is 83%. At first glance, these percentages seem impressive and almost impossible for most assets in such a short period of time. Especially given the fact that such growth requires some fundamental catalyst, which currently does not exist. However, is this necessarily true for bitcoin as well?
At the end of 2017, the price of bitcoin registered an incredible 2100% and reached $19,469. The rise was followed by sales, which lowered the price by 83% to $3,208, reached at the end of 2018.
In fact, over the past year, bitcoin has risen 300%, and since the start of the pandemic, the price has skyrocketed to $64,802 in early April 2021, registering a growth of just over an impressive 1,600%.
The record values were followed by sales of crypto markets, which erased 56% of the price of bitcoin, sending the cryptocurrency at $28-29,000 in early June 2021. Lower prices seemed attractive to buyers, who increased the price by nearly 90% to the current $54,706 for bitcoin.
All this historical volatility in bitcoin shows us that it is quite possible the price to register a growth of just over 83% and reach $100,000. However, whether this price will correspond to the real value of the cryptocurrency is a whole another question.
BenchMark offers cryptocurrencies for online trading. The instruments are offered as CFDs on the MetaTrader platform with a narrow buy/sell spread, without commissions and real-time quotes.
Trading cryptocurrencies makes it possible to achieve a result both when the price rises (through purchases) and when it becomes cheaper (through short sales) and because they are traded on a margin, deals can be concluded without the need to pay the total value of the cryptocurrencies.
|Min. trading volume||0.01 lot|
|Margin requirement||from 10%|
|Hedging without margin||YES|
|Stop/Limit orders restrictions||NO|
|Expert Advisors||YES, without restrictions|
|Real-time quotes||YES, completely free|
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