Bitcoin has seen a resurgence in price since the second decade of the 21st-century began. However, there are still some lingering questions about the future of the most influential cryptocurrency in the world. And with the split set to happen soon, there is no consensus on where the currency is heading.
Predictions for Bitcoin prices
CEO of Galaxy digital and crypto supporter believes the liquidy-driven market will not stop anytime soon. During an interview with CNBC on February 14th, the former Goldman Sachs executive said:
Coming out of the ashes, Bitcoin has really developed its own lane as a store of value. Where these other cryptos – Ethereum or EOS – there are probably 25 other really credible cryptos. They’re trying to build the blockchain of the future, a decentralized trust layer. That’s more the three-to-five-year bet. I’m surprised at how well they’ve done this year. They’ve actually outperformed Bitcoin, which tells you how much activity is in the space. […] Right now, Bitcoin feels a little frenzied, and we can see it surge up. But I think, by the end of the year, we certainly take out the old highs or at least we go to the old highs. That’s $20,000. We might be there, literally, by the halving, which is in a couple of months.
As of this writing, Bitcoin is not too far from reaching said heights. But he isn’t the only industry leader with an opinion regarding Bitcoin’s future.
Another crypto giant has decided to speak up about Bitcoin pricing in the past couple of weeks. Speaking to Block TV on February 23rd, the CEO of Binance a had this to say about the future of the world’s biggest cryptocurrency.
I personally believe the halving has not been priced in. The market is not efficient. Most people don’t get information quickly. People need a lot of time to let concepts sink in and adjust. Economic theory tells us that the bitcoin price will likely increase but this is just the theory and hard to predict. (However) I feel pretty positive.
How positive does he feel? In that same interview, Zhao admits that he isn’t sure. But he believes it will surpass the $20,000 by the end of the year. That is somewhat of a more conservative prediction than the one made by Mr Novogratz.
The CEO of CEX decided to jump on the ring and voice his opinion about Bitcoin’s immediate future on an interview on February 23rd. He has used a stock-to-flow model to make accurate predictions in the past. However, unlike his other counterparts, Mr Kravets predicted BTC’s minimum price given its current market conditions.
If we consider Bitcoin a commodity like the CFTC does, then Bitcoin — like other commodities — has a built-in floor representing the cost of production. I think what we saw this winter may have been an established price floor set by the miners of around $6,800 — but as the block reward is cut in half, we can see the price floor rise to what I speculate to be just under $9,000.
A floor of $9000 implies that the floating price could be in the $15,000 to $20,000 range.
Global Advisor co-founder sat down with Yahoo! Finance on February 2nd and painted a far more optimistic view than his counterparts. In the interview, Lee explains:
[Bitcoin] recovered its 200-day moving average. That’s a big deal as you know, as anyone who’s a trend follower knows — when you’re back above your 200-day, you’re back in a bull market. Whenever Bitcoin breaks back into its 200-day, its average six-month gain is 197%. We think it can hit $27,000 by summer. It’s a bull market on Bitcoin.
The founder and CEO of Tron is looking beyond the split. And these are his thoughts regarding Bitcoin and its long term future during an interview he gave to CNN on February 23rd.
I definitely believe Bitcoin will pass $100K in 2025. I believe we can achieve this price before 2025. At the same time, I think a lot of other crypto projects like Tron, Ethereum and XRP will also see (a) bull market.
The reason for his optimism? Simple, as Mr Sun explains:
The (Bitcoin) split will only increase demand. The market is demanding more crypto, especially Bitcoin. I don’t see the spot price going below $15,000 after the halving. […] That means that the only place to go is up from there.
The beast is always hungry.
Bitcoin is a fluctuating market that is still maturing. And, as the market matures, new competitors will be drawn into the mix. These new players have the potential to reshape the landscape and push out established firms through cannibalization. One of those new players is central banks. The rise of BTC has brought the discussion back to whether or no central banks should have cryptocurrency. And while some investors look at that with wary eyes, others embrace the challenge.
During an investor’s call on February 12th, Barry Silbert, who is the founder and CEO of Greyscale Investment, expressed his eagerness to see BTC take on the FOMC as well as the ECB.
So at one point of the future we might have 80 different (Central Bank Digital Currencies). And if that happens, it would trigger a tremendous amount of investment in operators of financial systems where essentially every financial institution would then have to be able to safely store and transact CBDCs and, guess what, if they actually build that infrastructure, that same infrastructure could be used for non-central bank digital currencies like Bitcoin.
So it seems the future and the present favours those who are Bitcoin holders. Whether it is Tom Lee, Alexander Kravets, Changpeng Zhao, or even Barry Silbert, it doesn’t matter. All major industry insiders agree that, unlike 2016, this new halving won’t bring the marking crashing down. Instead, it will only help supply meet demand at a higher price point, pushing Bitcoin to new heights never seen before.