Despite the recent poor performance from Bitcoin, this could all turn around. Investors in Bitcoin got a treat, when analysts predicted that the number one virtual currency could reach $91,000 by March 2020.
After hitting an all time high of $20,000 in December the beginning of the year saw this almost halve, and this weekend, the coin was valued at little over $7,000. However, the researchers who are based at the New York Fundstrat Global Advisors believed that they have looked at the long term value of Bitcoin, and have mapped out in detail the short and long term trends, which include mining costs, trading trends and other technical analysis.
The Head Of Research, Tom Lee, states that their research shows that the cryptocurrency is very susceptible of dramatic rises, which follow huge falls in value. As well as this, Lee developed the Bitcoin Misery Index, a contrarian indicator, which means that the lower it is on the scale, the greater the likelihood of Bitcoin will be moving up in price. It is currently at the second lowest point.
Unfortunately not all experts and investors share Lee’s predictions, particularly Warren Buffett, who has predicted Bitcoin to fail. He has previously stated that he does not own any Bitcoins and has no plans to invest in it ever.
Of course, the recent fall in Bitcoin’s value was not helped by the announcement from Google stating that they will ban all ads related to cryptocurrency. They implemented their ban in after Facebook, their main advertising rival, announced they would also be banning cryptocurrency adverts back in January. On top of the this, the cryptocurrency market has been hit by new regulations, after a warning from the US Securities and Exchange Commission (SEC) that came earlier this month.
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